The impact of Sarbanes–Oxley on SEC enforcement in public company disclosure cases — Part I

Abstract

This paper surveys the recent changes in Securities and Exchange Commission (SEC) enforcement measures following the enactment of the landmark Sarbanes–Oxley Act of 2002 (SOX). The paper, the first in a two-part series, focuses on the Commission's use of the new or expanded powers provided by SOX in cases involving financial fraud and mismanagement by large public companies. In particular, the paper illustrates recent uses of large civil penalties, payments under the Fair Funds provision, expanded equitable remedies, and the plaement of so-called extraordinary payments to executives in escrow.