SEC enforcement targets beneficial ownership reporting violations - SEC Update

On September 25, the SEC announced that it had initiated and simultaneously settled cease-and-desist proceedings against 23 individuals and companies charged with violations of Exchange Act provisions and SEC rules that required them to report information about their holdings and transactions in public company equity securities. Most of the alleged violations involved failures to file beneficial ownership reports in a timely manner. The SEC cited the respondents for filing late reports on Forms 3, 4, and 5 under Exchange Act Section 16(a) and Schedule 13D or 13G disclosure statements under Exchange Act Section 13(d) or 13(g). In addition, the SEC charged one company for also filing late reports of its reportable securities holdings on Form 13F as required by Exchange Act Section 13(f).