In his remarks at the “SEC Speaks in 2011” program in February, SEC Commissioner Luis Aguilar threw fuel on some long-smoldering embers at the agency: its policy of permitting defendants to settle cases without admitting or denying any misconduct.
Aguilar stated his goal that SEC settlements should “have obvious deterrence value” and cause those tempted to engage in similar misconduct to think twice. He also said he wanted settling defendants to accept accountability for their violations and even “issue mea culpas” to the public. That may be unrealistic, given the potential liability that could result from private civil actions against the ...