6.1.4 SEC Enforcement Actions

While enforcement activity by the SEC has occurred for many years, a marked increase in SEC focus on the municipal market has occurred since 2010. In that year, the SEC Enforcement Division reorganized into certain subject matter units, one of which was formed to focus on municipal securities and public pensions. The new Public Finance Abuse Unit includes attorneys, accountants, and investigators, many of whom are former prosecutors. The consequences of an SEC investigation are very expensive, can be politically harmful, and can potentially damage an agency or individual’s reputation, even if no charges are ever brought.