Wyly Trial To Shine Spotlight On SEC Guilt Admission Push

Overview


Steven Scholes, commenting on the potentially long line of legal battles for the U.S. Securities and Exchange Commission (SEC) should it continue a new policy of refusing to settle with defendants who won’t admit wrongdoing, said the SEC has yet to offer much clarification on which cases it will elect to try in the absence of an admission of guilt, but believes the new policy will only apply to those involving particularly egregious conduct. “If [the SEC] insists on admissions, I believe there are many situations in which a defendant has very little to lose and very much to gain by trying the case,” he said. “The risk of this policy is that it removes the incentive from the defendant’s side to settle.”