Andrew Wise Quoted Regarding Admission of Wrongdoing in Civil Actions in Institutional Investor's Alpha

"Why Philip Falcone Admission Might Not Set a Precedent"
Institutional Investor's Alpha
10.15.13Andrew Wise is quoted regarding regulatory agencies' recent push for defendants' admission of wrongdoing in civil actions. Financial industry executives have recently agreed to admit wrongdoing in multimillion dollar settlements with the Securities and Exchange Commission (SEC). With the SEC's negotiations with SAC Capital Advisors on the horizon, the question remains whether the company's CEO will admit to wrongdoing. CEOs may wish to avoid admission altogether in the event that the Department of Justice is collecting evidence to build a criminal case. "The admission of wrongdoing can become in itself the foundation for a criminal case," Wise said. In addition, an admission may signal investors to sue the fund and create a more litigious atmosphere within the industry. "It will all be case by case, but I have a feeling the SEC will be forced to take more cases to trial by insisting on an admission of wrongdoing," he said.
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