by Linda Thomsen, Director, Division of Enforcement, Before the U.S. Senate Committee on Finance
Chairman Grassley, Ranking Member Baucus, and Members of the Committee:
I. Introduction
Thank you for inviting me to testify today about the tax aspects of options backdating. I am pleased to testify next to Deputy Attorney General Paul McNulty and IRS Commissioner Mark Everson. While each of us has different law enforcement responsibilities, backdating can impact criminal and tax laws as well as the federal securities laws. Because of this, I want to assure the Committee that the SEC's Enforcement staff has been sharing information with the Department and the Service as warranted and appropriate. Recently, in fact, the Commission and the Department of Justice jointly announced the filing of two enforcement actions concerning backdating.
Today, I hope to provide the Committee with an understanding of our law enforcement efforts relating to stock options as they, in turn, relate to your interest in overseeing our tax laws. I realize, however, that your interests may go beyond what I, as Director of the Division of Enforcement, can expertly speak to in my testimony, so I am appending a copy of the testimony being given today in the Senate Banking Committee by my Chairman, Chris Cox, also on the issue of options backdating.
See full Testimony.
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