State securities regulators opened greater than 5,330 new investigations and continued work on almost 1,700 ongoing investigations for a complete of about 7,030 investigations in 2021, in line with the North American Securities Directors Affiliation’s 2022 Enforcement Report on 2021 information.
State securities regulators took about 1,660 enforcement actions on these instances, which led to $312 million in restitution, almost $146 million in fines, and over 735 years of felony penalties, together with incarceration and group supervision.
The report contains responses from 48 of NASAA’s U.S. member jurisdictions.
“The full variety of investigations decreased barely” from the earlier two years, Joe Rotunda, vice chair of NASAA’s Enforcement Part, and director of the Enforcement Division of the Texas State Securities Board, advised ThinkAdvisor Thursday in an e-mail.
However fines jumped 118% from 2020, once they totaled $67 million, he stated.
Rotunda factors out that NASAA organized the COVID-19 Enforcement Sweep in 2020, “which resulted in plenty of new instances and enforcement actions. It seemingly led to a rise within the variety of investigations reported for the 2021 survey and the 2021 Enforcement Report.”
See the gallery for six schemes that state securities regulators pursued and that have been highlighted within the latest NASAA report; the instances resulted in fines and, in a number of situations, jail time.