Barry Pollack Quoted Regarding Enforcement Pressure at the SEC in Global Investigations Review

"SEC: under pressure"
Global Investigations Review
11.23.14

Barry Pollack was quoted regarding the outcome of reported pressure within the SEC to not settle or drop cases once charges are filed, potentially resulting in cases moving forward that are not that strong. He said that in general when the SEC brings weak cases, companies will often look to settle as quickly as possible to avoid the risk of uncertainty arising from litigation. "The problem is that it's much easier for the SEC to bring a case than for a company to defend it even if the violations are unclear," he said.

Pollack said there are legitimate concerns that the SEC does not always exercise restraint. He explained that even with weak cases the risk is often too great for companies and individuals to fight it at trial. "They might instead be able to use the weaknesses in the SEC's case to negotiate a smaller penalty."

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