SEC Sanctions Hit New High at $8.2B in 2024

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The Securities and Exchange Commission filed 583 enforcement actions in fiscal year 2024 while obtaining orders for $8.2 billion in financial remedies, the highest amount in SEC history, according to the agency.

The total enforcement actions represent a 26% decline compared to fiscal year 2023, according to the SEC's report.

The agency brought 98 actions against broker-dealers and 135 against investment advisors/investment companies.

Of those cases, the SEC states that it filed 431 “stand-alone” actions, which was 14% less than in the prior fiscal year, as well as 93 “follow-on" administrative proceedings seeking to bar or suspend individuals from certain functions in the securities markets based on criminal convictions, civil injunctions or other orders — 43% less than the prior fiscal year.

There were also 59 actions against issuers who were allegedly delinquent in making required filings with the SEC, a decrease of 51%.

The $8.2 billion in financial remedies consisted of $6.1 billion in disgorgement and prejudgment interest, also the highest amount on record, and $2.1 billion in civil penalties, the second-highest amount on record, the SEC said.

"Approximately 56% of the $8.2 billion financial remedies ordered is attributable to a monetary judgment obtained following the SEC’s jury trial win against Terraform Labs and Do Kwon, who were charged with one of the largest securities frauds in U.S. history," the agency states.

The SEC also obtained orders barring 124 individuals from serving as officers and directors of public companies, the second-highest number of such bars obtained in a decade.

“The Division of Enforcement is a steadfast cop on the beat, following the facts and the law wherever they lead to hold wrongdoers accountable,” SEC Chair Gary Gensler said. “As demonstrated by this year’s results, the Division helps promote the integrity of our capital markets to benefit investors and issuers alike.”

Marketing Rule and Recordkeeping

In fiscal year 2024, the SEC brought recordkeeping cases — including off-channel communications actions — resulting in more than $600 million in civil penalties against more than 70 firms, including the agency’s first cases charging recordkeeping violations against municipal advisors.

Since December 2021, the initiative has resulted in charges against more than 100 firms and more than $2 billion in penalties, according to the SEC.

Investigating noncompliance with the Marketing Rule resulted in settled charges against more than a dozen investment advisors in 2024, according to the report.