In the SEC's fiscal year 2011, the median settlement values in its cases against companies nearly doubled from $800,000 in FY2010 to $1.47 million in FY2011, a level near its post-SOX high of $1.5 million in FY2006. The median settlement value in SEC cases against individuals in FY2011 was $175,000, a 35 percent increase from the previous post-SOX high of $130,000 in FY2008.
These statistics are taken from a January 23, 2012 report from NERA Economic Consulting entitled, "SEC Settlement Trends: 2H11 Update." NERA publishes its report on SEC settlements periodically based on its review of every litigation release and administrative proceeding document published since July 21, 2002. Other highlights of the FY2011 report include:
- The total number of settlements in FY2011 (682) was almost identical to FY2010 (680).
- "High-value settlements" with individuals reached post-SOX highs.
- The largest settlement in FY2011 came in a default judgment in an alleged Ponzi scheme alleged against Milowe Allen Brost and Gary Allen Sorenson. NERA states that this $310 million settlement was the largest-ever settlement or judgment with an individual, and the tenth-largest settlement or judgment with a company or individual since SOX.
Rounding out the top five largest SEC settlements in FY2011 were: J.P. Morgan Securities LLC ($154 million); US Pension Trust Corp. & US College Trust Corp. ($113 million); Morgan Asset Management & Morgan Keegan & Co. Inc. ($100 million); Jacob “Kobi” Alexander, cofounder, Comverse Technology, Inc. ($54 million).