Key highlights from the SEC 2024 enforcement report 

On Nov. 22, 2024, the Securities and Exchange Commission (SEC) issued its annual press release regarding the Enforcement Results for Fiscal Year 2024. 

Throughout 2024, the SEC filed 583 enforcement actions. These included 431 new enforcement actions, 93 “follow-on” administrative proceedings and 59 actions against issuers delinquent in SEC required filings. Compared to the previous fiscal year, the total enforcement actions of 583 represent a 26% decrease in filings of which 16% is a decrease in new enforcement actions. 

The 2024 actions resulted in $8.2 billion in financial remedies, the largest amount in SEC history. These included $6.1 billion in disgorgement and $2.1 billion in civil penalties. Over 50% of the total financial remedies resulted from one SEC case which was among the largest securities fraud charges in United States history. 

During the year, the SEC also distributed $345 million to harmed investors and awarded $255 million to whistleblowers. Overall, the SEC received more than 40,000 tips, complaints and referrals, with over 24,000 of these being whistleblower tips. This marked the highest number of tips received in a single year in SEC history. Furthermore, 124 individuals were barred from serving as officers and directors of public companies by the SEC this year. 

To promote compliance, the SEC rewarded various public issuers, broker-dealers and advisory firms with reduced or no civil penalties for cooperation, self-reporting violations or self-remediating violations. This occurred in cases involving various matters including material misstatements, recordkeeping violations, fraud and control failures. 

The Division of Enforcement (the Division) protected investors during the year with additional initiatives and actions taken to address noncompliance during the year, including: 

• Recordkeeping – The Division charged various entities with civil penalties for noncompliance with recordkeeping requirements during the year to protect investors. 
• Marketing rule – In 2024, the Division charged investment advisors for advertising misleading performance or theoretical performance without ensuring the information was relevant to the users, using false or unsupported significant statements, testimonials, endorsements or third-party ratings lacking required disclosures. 
• Whistleblower protection – The Division filed various actions for violations of the Dodd-Frank whistleblower protection rule in 2024, including the largest penalty for a whistleblower protection rule violation recorded in history. This rule protects whistleblowers by prohibiting companies from hindering individuals from whistleblowing or retaliating against whistleblowers. 
• Insider and investment manager disclosures – In order for investors to make informed decisions, it is crucial for insiders and investment managers to abide by the required securities holdings and transactions disclosures. The Division charged various individuals and companies during the year for failure to disclose securities holdings and transactions in a timely manner. Additional charges were brought against individuals and companies that contributed to filing failures made by management. 
• Financial remedies for fraud – Various settled cases earned the Division strong financial remedies during the year for fraud violations such as political corruption schemes, bribery schemes, including violations of the Foreign Corrupt Practices Act, Ponzi schemes, pyramid schemes, pre-IPO fraud schemes, false records and false advertising. 
• Rising risks – The Division recognized the heightened risks technologies and cybersecurity cause investors and focused on protecting investors in 2024 by investigating and filing cases against noncompliance related to the false claims on the disclosed use of artificial intelligence, false information on social media, cybersecurity system failures and failed disclosures of cybersecurity incidents. The Division also settled various cases regarding cryptocurrency where investors were given false and misleading information regarding company compliance programs and asset protection processes, as well as for a company failing to register sold cryptocurrency assets. 
• Individual accountability - The Division continues to prioritize individual accountability year over year by charging strong penalties for securities law violations. 
• Gatekeepers - The Division performs investigations on professionals such as accountants and auditors to ensure their responsibilities and obligations are being performed to protect investors. Investigations in 2024 led to charges that included violations in areas such as the auditor independence rules and fraudulently performed audits. 
• Misstatements - The Division continues to investigate public company records and disclosures for accuracy for the protection of investors. Noteworthy charges for misconduct during the year were misleading statements regarding financial performance and intentional misstatements. 
• Market abuse and confidential information protection - The Division filed various actions for market abuse and failure to safeguard material nonpublic information during the year. The Division imposed charges on various individuals and companies for disclosing confidential information, failing to design and implement controls over the safekeeping and proper use of material nonpublic information, obtaining material nonpublic information illegally and for conducting cherry-picking schemes, free-riding schemes and insider trading transactions defrauding investors. 
• Market integrity – During 2024, the Division filed various actions against investment professionals that were performing actions such as falsifying statements, making misleading statements and partaking in fraudulent activities. These professionals were failing to meet their legal and professional obligations and putting investors at risk. 

Only five actions made by the Division resulted in trial in 2024, all of which were conducted in federal district court and ruled in favor of the SEC. The most notable trials related to actions against a cryptocurrency security fraud scheme and insider trading in a peer company. Both resulted in robust penalties. 

The Division continues to hold individuals and companies accountable through the various actions taken for noncompliance and wrongdoings in order to protect investors. This is evidenced by the results discussed for the year. 

For the full 2024 Enforcement Results Press Release published by the SEC, refer here.