SEC Obtains Orders for a Record $8.2 Billion in Financial Remedies in Fiscal Year 2024

In fiscal year 2024, the Securities and Exchange Commission filed 583 enforcement actions and obtained orders for $8.2 billion in financial remedies—the most ever obtained by the SEC in a single fiscal year. The $8.2 billion consisted of $6.1 billion in disgorgement and prejudgment interest and $2.1 billion in civil penalties.

The SEC also obtained orders barring 124 individuals from serving as officers and directors of public companies. And, in fiscal year 2024, the SEC distributed $345 million to harmed investors.

Over the year, the SEC initiated a number of actions to address pervasive noncompliance. These matters included violations of recordkeeping requirements, the Marketing Rule, and the Dodd-Frank whistleblower protection rule. Other industry-wide initiatives addressed failures to disclose holdings and transactions by insiders and investment managers.

The SEC also secured significant financial penalties in cases involving sophisticated schemes and major frauds. Terraform Labs and its founder Do Kwon agreed to a final judgment of more than $4.5 billion after a jury found them liable for fraud. Morgan Stanley agreed to pay over $249 million to resolve fraud charges relating to the disclosure of confidential information about large “block trades.” SAP paid nearly $100 million to resolve Foreign Corrupt Practices Act violations pertaining to bribery schemes in South Africa, Malawi, Kenya, Tanzania, Ghana, Indonesia, and Azerbaijan.

A number of SEC actions also focused on emerging technologies and risks, including artificial intelligence, relationship investment scams, cybersecurity, social media, and crypto. In addition, the SEC set its sights on charging individuals, including gatekeepers, where appropriate. And the SEC pursued many enforcement actions in the familiar arenas of public company misstatements, market abuse and abuse of material nonpublic information, and fraud and securities violations committed by investment professionals.