Good afternoon,
Today the SEC is announcing the filing of charges against two U.S. software companies accused of financial fraud. We are simultaneously announcing that these charges have been settled, with the result that in one case, there will be a $50 million penalty against the corporation.
In the other case, while the Commission has settled with the corporation on terms that do not include a penalty against the corporation, we will pursue the individuals responsible for the fraud and seek penalties against them in federal court.
The $50 million penalty against McAfee is consistent with a very recent trend in the SEC's use of its penalty authority. All but three of the penalties of $50 million or more obtained in Commission settlements since 1986 have been obtained in the last three years.
For instance, in 2002, when the Commission filed its financial fraud case against Xerox, the $10 million penalty we obtained was the largest civil penalty the Commission had ever imposed against an issuer in a financial fraud action.
See full Speech.
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