Question

. Class, can you provide an example of an executive that has been held accountable for fraud by Securiies Exchange Commission? How about an executive that you feel was not held adequately accountable for SEC violations?

Answer 1

An individual who was a CEO of a company allegedly falsely increased the depreciation time length for the property, plant and equipment of his company in the balance sheets. Therefore it inflated the current year profits of the company, the same was brough to the notice of the SEC by few stakeholders and thus he was held accountable for fraud by SEC.

A person was found to be engaged in making false statements in the company's Annual report about by SEC, therefore he was liable for a Tier 3 violation(Since It is a Violation that Also Involves a Substantial Risk of Loss to Others or Gain to the Violator) penalty which is equivalent to 1,60,000$, However He was charged with Tier 2 violation by the SEC. Thus he was not held adequately accountable by SEC.