ANALYSIS: SEC’s Top Ten Enforcement Developments of 2009

This article highlights significant developments during 2009 in the enforcement program of the U.S. Securities and Exchange Commission (“SEC”). Developments were selected because they may signal future trends or establish new legal standards.

The Number One enforcement development of 2009 is the continuing fallout from the Bernard Madoff scandal. The revelation that Madoff’s fraud had been the subject of several SEC investigations, none of which uncovered Madoff’s massive Ponzi scheme, led to questions about the SEC’s effectiveness by the media, members of Congress and the SEC’s own Inspector General. The SEC responded to these criticisms by making many changes, including changes to the Enforcement Division’s leadership, organization and policies and procedures. The remaking of the SEC’s Division of Enforcement will undoubtedly be the subject of continuing discussion and debate throughout 2010.