SEC financial remedies totaled record $8.2B in FY24, most of it from one fraud

SEC financial remedies totaled record $8.2B in FY24, most of it from one fraud
The agency also received highest number of tips, complaints, and referrals.
NOV 25, 2024

Those involved in misconduct relating to federal securities laws faced a record level of financial remedies following SEC investigations and enforcements, the agency has revealed.

Despite a 26% decline in the number of enforcement actions taken (583) in fiscal year 2024 compared to the previous period, the agency obtained orders of $8.2 billion in financial remedies, the highest ever, including a record $6.1 billion in disgorgements and the second highest ever civil penalties totaling $2.1 billion.

However, these stats are skewed by the monetary judgement obtained against Terraform Labs and Do Kwon who were found guilty of fraud - one of the largest in US history which lost investors almost $40 billion - in April this year. The SEC sought $5.3 billion but obtained $4.47 billion and this accounted for 56% of the agency’s $8.2 billion total.

Investors saw $345 million distributed to them by the SEC in FY2024.

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

The year also saw a record number of tips, complaints, and referrals to the SEC, a total of 45,130 and there were more than 24,000 whistleblower tips – 14,000 of them from two individuals – with awards totaling $255 million.

“The varied enforcement actions recommended by the [Enforcement] Division in fiscal year 2024 demonstrate the Division keeping pace with emerging threats presented by misstatements regarding artificial intelligence, fraudsters using social media to perpetuate relationship scams, and more, while maintaining its focus on evergreen investor risks such as material misstatements, deficient internal controls, and major gatekeeper failures,” said Sam Waldon, Acting Deputy Director of the Division of Enforcement. “I could not be prouder of the dedicated and talented staff of the Division of Enforcement who work tirelessly to hold wrongdoers accountable, promote compliance, and help promote investor trust in the markets.”

Latest News

Women take the lead in most households' financial decisions, CFP Board finds
Women take the lead in most households' financial decisions, CFP Board finds

New research reveals women's influence in family decision-making, their top financial goals, and how concern for other household members helps shape their priorities.

Creative Planning expands in California with Maxwell Wealth Strategies
Creative Planning expands in California with Maxwell Wealth Strategies

The $345 billion RIA giant is extending its footprint in the West Coast as it lands its first deal for 2025.

Client retention is job number one
Client retention is job number one

Advisors leaning heavily toward fee-based services today enjoy a key competitive edge over commission-based practices – and it all hinges on preserving client loyalty.

Fed's Barr sounds off on risks from AI's speed
Fed's Barr sounds off on risks from AI's speed

The top cop at the Federal Reserve speaks out on possible herding behavior, with economic "gains being realized only by a small group."

60-year-old New York broker-dealer files bankruptcy, closes down
60-year-old New York broker-dealer files bankruptcy, closes down

Stoever, Glass & Co. Inc. opened in May 1964 and focused on municipal bonds.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.