SEC Cuts Accountant Slack For Self-Reporting Insider Trading

June 08, 2020

Kyle DeYoung comments on a recent insider trading settlement that highlights the value of cooperating with the SEC.

An excerpt from “SEC Cuts Accountant Slack For Self-Reporting Insider Trading,” Law360, June 8, 2020:

"Cooperation is of the highest value to the SEC ... and providing specifics on the financial advantage is something they've been doing more and more," said Kyle DeYoung, a Cadwalader Wickersham & Taft LLP partner and former senior counsel in the SEC's enforcement division.

In a typical insider trading case, the SEC will enforce civil penalties at a "one to one" ratio to disgorgement, DeYoung noted. But the regulator cut the civil penalty by 50% based on Kiena's self-reporting, considered a "gold standard" for cooperation in insider trading cases, he said.

However, Kiena may have gotten an even deeper discount on the civil fine had her conduct not been both "blatant and egregious," DeYoung added, noting that "she should have known better," particularly as a CPA.

Read “SEC Cuts Accountant Slack For Self-Reporting Insider Trading.” (Law360 login required)