Kara Novaco Brockmeyer, Chief of FCPA Unit, to Leave SEC After 17 Years of Service

The Securities and Exchange Commission today announced that Kara Novaco Brockmeyer, Chief of the Enforcement Division’s Foreign Corrupt Practices Act (FCPA) Unit, is planning to leave the agency later this month. 

Since 2011, Ms. Brockmeyer has led a national unit of 38 attorneys, accountants, and other specialists focusing on violations of the anti-bribery and accounting provisions of the federal securities laws.  In addition, Ms. Brockmeyer has played a leading role in SEC programs, having founded and served as the co-head of the Enforcement Division’s Cross Border Working Group, a proactive risk-based initiative focusing on U.S. companies with substantial foreign operations, and serving as a member of the Enforcement Division’s Cooperation Committee and the Enforcement Advisory Committee.  

“Kara’s creativity and perseverance have led to truly outstanding results in the SEC’s FCPA program,” said Stephanie Avakian, Acting Director of the SEC’s Enforcement Division.  “Her leadership of the unit has led to many successes in the FCPA area.”

Ms. Brockmeyer said, “It has been an honor and a privilege to work with the incredibly talented and dedicated staff in the FCPA Unit and throughout the Division of Enforcement and the SEC.  I am very proud of the results that the unit has achieved over the past five years.”

Under Ms. Brockmeyer’s supervision of the FCPA unit, the SEC has brought 72 FCPA enforcement actions addressing a wide range of misconduct and resulting in judgments and orders totaling more than $2 billion in disgorgement, prejudgment interest, and penalties.  These impactful actions included charges against:

• Hedge fund Och-Ziff Capital Management Group LLC, which paid $412 million in civil and criminal sanctions to settle charges that it used intermediaries, agents, and business partners to pay bribes to high-level government officials in Africa. In addition, Och-Ziff CEO Daniel Och agreed to pay nearly $2.2 million to settle SEC charges that he caused certain violations along with CFO Joel Frank, who also agreed to settle charges.

• Brazilian-based petrochemical manufacturer Braskem S.A., which agreed to pay $957 million in a global settlement for concealing millions of dollars in illicit bribes paid to Brazilian government officials to win business.

• Financial services firm JP Morgan Chase & Co., which paid $264 million in a global settlement of charges that it corruptly influenced government officials and won business in the Asia-Pacific region by giving jobs and internships to their relatives and friends.

• Brazilian-based aircraft manufacturer Embraer S.A., which agreed to pay $205 million to settle charges that it violated the FCPA to win business in the Dominican Republic, Saudi Arabia, Mozambique, and India.

• Tokyo-based conglomerate Hitachi Ltd. for inaccurately recording improper payments to South Africa’s ruling political party in connection with contracts to build power plants.  Hitachi agreed to pay $19 million to settle charges.

• Anheuser-Busch InBev, which paid $6 million to settle charges that it violated the FCPA by using third-party sales promoters to make improper payments to government officials in India and chilled a whistleblower who reported the misconduct.

• Wisconsin-based global provider of HVAC systems Johnson Controls, which agreed to pay more than $14 million to settle charges that its Chinese subsidiary used sham vendors to make improper payments to employees of Chinese government-owned shipyards and other officials to win business.

• Magyar Telekom Plc. and three of its former top executives for bribing government and political party officials in Macedonia and Montenegro to win business and shut out competition in the telecommunications industry.
   

During Ms. Brockmeyer’s tenure as Chief of the FCPA Unit, the SEC expanded its use of cooperation tools in the FCPA area, including the first FCPA-related non-prosecution agreement (NPA) in 2013 with Ralph Lauren Corporation, and the first use of a deferred prosecution agreement with an individual in an FCPA case in 2016.  Ms. Brockmeyer also supervised a significant financial fraud matter that resulted in charges against Weatherford International and its executives for inflating earnings by using deceptive income tax accounting, and against Ernst & Young LLP and two of its partners for conducting failed audits of Weatherford.

Ms. Brockmeyer joined the SEC in 2000 following several years in private practice.  She started supervising investigations in 2002 and was promoted to Assistant Director in 2005.  In addition to FCPA investigations, Ms. Brockmeyer has substantial experience supervising matters involving financial fraud, insider trading, market manipulation, and violations by regulated entities.  She received the Capital Markets Award and the Supervisory Excellence Award from the SEC in 2004 as well as the Irving Pollack Award in 2013 and the Meritorious Impact Award in 2016.

Ms. Brockmeyer received her law degree magna cum laude from the University of Michigan Law School and her undergraduate degree cum laude from Williams College.

Following Ms. Brockmeyer’s departure, Charles Cain, who is currently the Deputy Chief of the FCPA Unit, will serve as Acting Chief.

SEC Announces Agenda for April 5 Meeting of the Equity Market Structure Advisory Committee

The Securities and Exchange Commission today announced its Equity Market Structure Advisory Committee will meet on April 5 beginning at 9:30 a.m. ET.  The Commission established the advisory committee to provide a formal mechanism through which the Commission can receive advice and recommendations on equity market structure issues.

The meeting will include updates from the four subcommittees, including presentations from the Regulation NMS subcommittee on Rule 611 and the Trading Venues Regulation subcommittee on SRO rule-based limitations of liability and regulatory centralization.

The meeting will be held at the SEC’s headquarters at 100 F Street, N.E., Washington, D.C., and is open to the public.  It also will be webcast live on the SEC’s website, www.sec.gov, and will be archived on the website for later viewing.

Members of the public who wish to provide their views on the matters to be considered by the advisory committee may submit comments electronically or on paper.  Please submit comments using one method only.  Information that is submitted will become part of the public record of the meeting.

Electronic submissions:

Use of the SEC’s Internet submission form or send an e-mail to rule-comments@sec.gov.

Paper submissions:

Send paper submissions in triplicate to Brent Fields, Secretary, Securities and Exchange Commission, 100 F Street, N.E., Washington, D.C. 20549-1090.

All submissions should refer to File Number 265-29, and the file number should be included on the subject line if e-mail is used.

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SEC Equity Market Structure Advisory Committee

Agenda

April 5, 2017

9:30 a.m.         Welcoming Remarks by Acting SEC Chair Piwowar, Commissioner Stein, and Acting Director of Trading and Markets, Heather Seidel

10:00 a.m.       Regulation NMS Subcommittee Presentation and Preliminary Recommendations Relating to Rule 611

10:10 a.m.       Discussion of Rule 611 and Preliminary Recommendations

•  Jeff Brown, SVP, Legislative & Regulatory Affairs, Charles Schwab
• Charles Jones, Professor of Finance & Economics, Columbia Business School
• Adam Nunes, Head of Business Development, Hudson River Trading
• Paul Russo, Global Co-COO – Equities, Goldman Sachs
• Thomas Wittman, EVP for Global Equities & CEO, NASDAQ/PHLX/ISE/BX Exchanges

11:30 a.m.       Lunch

12:30 p.m.       Trading Venues Regulation Subcommittee Presentation on Regulatory Centralization and Preliminary Recommendations Relating to SRO Rule-Based Limitations of Liability

12:40 p.m.       Discussion of Regulatory Centralization and Preliminary Recommendations

• Anthony Albanese, Chief Regulatory Officer, NYSE
•  Lev Bagramian, Senior Securities Policy Advisor, Better Markets, Inc.
•  Thomas Gira, EVP, Market Regulation & Transparency Services, FINRA
• John Kerin, CEO & President, Chicago Stock Exchange
•  Brett Redfearn, Global Head of Equity Market Structure Strategy, JP Morgan Securities

2:00 p.m.         Break

2:15 p.m.         Market Quality Subcommittee Status Report to the Committee

2:45 p.m.         Customer Issues Subcommittee Status Report to the Committee

3:15 p.m.         Discussion of Next Steps / Adjournment 

SEC Charges Pastor With Defrauding Retirees

The Securities and Exchange Commission today announced fraud charges and an emergency asset freeze obtained against a Michigan-based pastor accused of exploiting church members, retirees, and laid-off auto workers who were misled to believe they were investing in a successful real estate business.

The SEC alleges that Larry Holley, the pastor of Abundant Life Ministries in Flint, Mich., cloaked his solicitations in faith-based rhetoric, replete with references to scripture and biblical figures.  Holley allegedly told prospective investors that as a person who “prayed for your children,” he was more trustworthy than a “banker” with their money.  According to the SEC’s complaint, Holley held financial presentations masked as “Blessed Life Conferences” at churches nationwide during which he asked congregants to fill out cards detailing their financial holdings, and he promised to pray over the cards and invited attendees to have one-on-one consultations with his team.  He allegedly called his investors “millionaires in the making.”

According to the SEC’s complaint, which also charges Holley’s company Treasure Enterprise LLC and his business associate Patricia Enright Gray, approximately $6.7 million was raised from more than 80 investors who were guaranteed high returns and told they were investing in a profitable real estate company with hundreds of residential and commercial properties. 

According to the complaint, Gray advertised on a religious radio station based in Flint and singled out recently laid-off auto workers with severance packages to consult her for a “financial increase.”  Gray allegedly promised to roll over investors’ retirement funds into tax-advantaged Individual Retirement Accounts (IRA) and invest them in Treasure Enterprise.  The SEC alleges that no investor funds were deposited into IRAs, and Treasure Enterprise struggled to generate enough revenue from its real estate investments to support the business and make payments owed to investors.  Treasure Enterprise owes investors an estimated $1.9 million in past due payments, according to the SEC’s complaint.

“As alleged in our complaint, Holley and Gray targeted the retirement savings of churchgoers, building a bond of trust purportedly based on faith but actually based on false promises,” said David Glockner, Director of the SEC’s Chicago Regional Office.

According to the SEC’s complaint, Holley, Gray, and Treasure Enterprise were not registered to sell investments.  The SEC encourages investors to check the background of anyone offering to sell them investments by doing a quick search on the SEC’s investor.gov website.

The SEC has obtained a temporary restraining order in U.S. District Court for the Eastern District of Michigan that freezes the assets of Holley, Gray, and Treasure Enterprise.  The court’s order also appoints a receiver and imposes other emergency relief.

The SEC’s complaint alleges violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5.  The complaint seeks disgorgement of ill-gotten gains plus interest, penalties, and permanent injunctions.

The SEC’s investigation, which is continuing, is being conducted by Ana P. Doncic, Delia L. Helpingstine, and Sruthi Koneru of the Chicago office.  The case is being supervised by Steven L. Klawans, and the litigation is being led by Jonathan S. Polish.  

SEC Names Sagar S. Teotia as Deputy Chief Accountant

The Securities and Exchange Commission today announced the appointment of Sagar S. Teotia as a Deputy Chief Accountant in the agency’s Office of the Chief Accountant.

As Deputy Chief Accountant, Mr. Teotia will lead the activities of the office’s accounting group, which includes understanding investor and other perspectives on accounting matters and consulting with public companies, auditors, and divisions and offices within the SEC, on the application of accounting standards and financial disclosure requirements. Mr. Teotia will also assist the office in discharging the Commission’s oversight of standard setting bodies such as the Financial Accounting Standards Board.

Mr. Teotia previously served in the office as a professional accounting fellow from 2009 to 2011. During his time as a fellow he followed the activities of professional accounting standard-setting bodies, both within the United States and internationally.

“I am very pleased that Sagar has agreed to return to the Office of the Chief Accountant to oversee the accounting group,” said SEC Chief Accountant Wesley Bricker. “Sagar’s prior experience as an SEC accounting fellow as well as his expertise and wealth of experience in public accounting will provide critical service to investors, companies and the Commission.”

“I am honored to have this opportunity to return to work at the Commission and serve with the talented and highly dedicated team in the Office of the Chief Accountant on behalf of investors,” said Mr. Teotia.

Mr. Teotia joins the SEC with approximately 18 years of professional experience that includes expertise in regulatory matters, technical accounting, and mergers and acquisitions. He joins the SEC from Deloitte & Touche LLP’s National Office Accounting Consultation Group in Chicago, where he was a partner.

Mr. Teotia’s work has included a focus on financial instruments, business combinations, and compensation issues, including stock compensation and pension matters. He has also worked on matters regarding the application of U.S. Generally Accepted Accounting Principles and International Financial Reporting Standards.

Mr. Teotia received an accounting degree from the University of Illinois at Urbana-Champaign. He is licensed to practice as a certified public accountant in Illinois.

SEC Halts Fraud Targeting Seniors

The Securities and Exchange Commission today announced an emergency asset freeze and temporary restraining order against a Chicago-based investment adviser and his financial management company accused of scamming elderly investors out of millions of dollars. 

The SEC alleges that Daniel H. Glick and his unregistered investment advisory firm Financial Management Strategies (FMS) provided clients with false account statements to hide Glick’s use of client funds to pay personal and business expenses, purchase a Mercedes-Benz, and pay off loans and debts among other misuses.

According to the SEC’s complaint, Glick was barred by FINRA in 2014 and had his Certified Financial Planner designation and Certified Public Accountant license revoked for conduct unrelated to today’s SEC charges.

“As alleged in our complaint, Daniel Glick raised millions of dollars from elderly clients by claiming that he would pay their bills, handle their taxes, and invest on their behalf.  In reality, Daniel Glick used much of their money to do what was best for Daniel Glick,” said David Glockner, Director of the SEC’s Chicago Regional Office.

The SEC’s complaint also names Glick Accounting Services, Glick’s business partner David B. Slagter, and Glick’s business acquaintance Edward H. Forte as relief defendants for the purposes of recovering client funds that Glick transferred or paid them in the form of advances or loans.

The court issued a temporary restraining order against Glick and FMS at the SEC’s request, and issued an order freezing the assets of Glick, FMS, and Glick Accounting Services.

The SEC encourages investors to check the background of anyone offering to sell them investments.  For more information on resources for performing due diligence on your broker or adviser, please visit www.investor.gov.

The SEC’s investigation, which is continuing, is being conducted by Michelle Muñoz Durk and John Kustusch, and the case is being supervised by Jeffrey A. Shank.  The SEC’s litigation will be led by Steven C. Seeger.  The SEC’s examination that led to the investigation was conducted by Terrence Bohan, Michael Altschuler, and Christine Little, and it was supervised by Rosanne Smith.

SEC Halts Boiler Room Scheme Involving State Lottery Tickets

The Securities and Exchange Commission today announced charges against a Florida-based company, its CEO, and its top sales agent accused of conducting a boiler room scheme that solicits investments in a business purportedly facilitating online and cell phone sales of lottery tickets in various states.

The SEC has obtained an emergency court order freezing the assets of LottoNet Operating Corp., David Gray, and Joseph A. Vitale. The SEC’s complaint alleges that they misrepresented to investors that their money would be used to develop and market LottoNet and that sales agents did not receive commissions. At least 35 percent of investor proceeds were allegedly paid to boiler room sales agents in the form of commissions, and LottoNet allegedly siphoned investor funds for personal spending on clothing, wedding-related expenses, and strip clubs.

According to the SEC’s complaint, which was unsealed in federal court today, among the pitches used in sales agent scripts prepared for cold calls to investors was “you’re looking at a monthly dividend payout of $8,500 every month” on a $25,000 investment if LottoNet reaches 1 percent market share. The scripts also allegedly touted the purported safety of the investment, noting a 60 percent return as a “worst case” scenario if the company was ever sold. The SEC alleges that while LottoNet has raised a total of approximately $4.8 million from investors, the company had only paid $10,525.43 in investment returns to investors through the end of February. Sales agents allegedly have been paid more than $1.1 million out of investor funds.

The SEC’s complaint further alleges that Vitale, who personally raised at least $1.4 million from investors, used the alias Donovan Kelly in an apparent attempt to hide from investors that he is permanently barred by the Financial Industry Regulatory Authority (FINRA).

“As alleged in our complaint, little did investors know they were being duped with a script based on misrepresentations while investor funds were being spent in strip clubs,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office.

The SEC’s investigation, which is continuing, has been conducted in the Miami office by Kate Zoladz, Gary Miller, and Allen J. Genaldi. The case is being supervised by Elisha L. Frank and the litigation is being led by Amie Riggle Berlin. The SEC appreciates the assistance of FINRA.

Overseas Traders Paying Back All Profits Plus Penalties in Insider Trading Case

The Securities and Exchange Commission today announced that three Peruvian traders have agreed to settle a pending case alleging that they traded on nonpublic information prior to the merger of two mining companies.

The SEC filed its complaint in September 2016, and the settlements were approved today in U.S. District Court for the Southern District of New York.

Nino Coppero del Valle, the alleged tipper who worked at one of the companies, agreed to pay full disgorgement of $53,607.70 plus interest of $5,382.44. His close friend and fellow attorney Julio Antonio Castro Roca agreed to pay full disgorgement of $59,300.02 plus $5,514.97 in interest and a $59,300.02 penalty. The other trader, Ricardo Carrion, agreed without admitting or denying the allegations to pay full disgorgement of $54,144.10 plus $5,820.29 in interest and a $54,144.10 penalty.

“The settlement of these actions for full disgorgement plus penalties on top of that reflects the strength of the evidence gathered in the SEC investigation,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office. “Overseas traders who violate U.S. insider trading laws can expect to face stiff monetary sanctions to resolve their cases.”

The final judgments also obtain permanent injunctive relief from each of the three defendants.

The SEC’s litigation was led by Jorge G. Tenreiro, Preethi Krishnamurthy, and Thomas P. Smith Jr.  The case was supervised by Sanjay Wadhwa. The SEC appreciates the assistance of the Peruvian securities regulator Superintendencia del Mercado de Valores.

SEC Announces 2017 Compliance Outreach Program Seminars for Investment Companies and Investment Advisers

The Securities and Exchange Commission today announced the opening of registration for its compliance outreach program seminars for investment companies and investment advisers.  The seminars will be offered in four cities and are intended to help Chief Compliance Officers (CCOs) and other senior personnel enhance compliance programs at investment companies and investment advisory firms. 

The SEC’s Office of Compliance Inspections and Examinations (OCIE), Division of Investment Management, and the Asset Management Unit of the Division of Enforcement jointly sponsor the compliance outreach program. 

All regional seminars will include an overview of OCIE’s 2017 priorities and individual seminars will feature the following panel discussions on current topics in investment management regulation:

• Portland, Oregon – May 17 (8:30 a.m. to 12:30 p.m.): Key examination program initiatives, examination procedures and selection process, and recent trends and issues in the Enforcement Division’s Asset Management Unit.
• New York – June 7 (12:30 p.m. to 5:00 p.m.): Staff examinations and observations, and topics of interest to advisers to private funds.
• Boston – June 13 (8:30 a.m. to 1:00 p.m.): Key examination program initiatives, typical examination process, and topics of interest to advisers to private funds.
• Chicago – June 13 (8:00 a.m. to 4:30 p.m.): Key examination program initiatives, examination procedures and selection process, common examination deficiencies, data analytics, and several hot topic panels generally applicable to both small and large firms. This seminar will be webcast. 

Please register here to attend one of the compliance outreach program regional seminars.  Registration for individual events will be closed at least two weeks before the event.  Seating is limited and only the Chicago seminar will be webcast.  If registrations exceed capacity, investment company and investment adviser CCOs will be given priority on a first-come, first-registered basis.  For more information, please contact ComplianceOutreach@sec.gov.

SEC Adopts T+2 Settlement Cycle for Securities Transactions

The Securities and Exchange Commission today adopted an amendment to shorten by one business day the standard settlement cycle for most broker-dealer securities transactions.  Currently, the standard settlement cycle for these transactions is three business days, known as T+3.  The amended rule shortens the settlement cycle to two business days, T+2. 

The amended rule is designed to enhance efficiency, reduce risk, and ensure a coordinated and expeditious transition by market participants to a shortened standard settlement cycle. 

“As technology improves, new products emerge, and trading volumes grow, it is increasingly obvious that the outdated T+3 settlement cycle is no longer serving the best interests of the American people,” said SEC Acting Chairman Michael Piwowar.  “The SEC remains committed to ensuring that U.S. securities regulation is reflective of modern times, and in shortening the settlement cycle by one day we aim to increase efficiency and reduce risk for market participants.”

Broker-dealers will be required to comply with the amended rule beginning on Sept. 5, 2017.

To assist broker-dealers, other securities professionals and the investing public in their preparation for the implementation of a T+2 settlement cycle, the Commission has established an e-mail address – T2settlement@sec.gov – for the submission of inquiries to SEC staff.
 

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FACT SHEET

Shortening the Trade Settlement Cycle

SEC Open Meeting
March 22, 2017

The amended Rule 15c6-1(a) would prohibit a broker-dealer from effecting or entering into a contract for the purchase or sale of a security that provides for payment of funds and delivery of securities later than T+2, unless otherwise expressly agreed to by the parties at the time of the transaction.  As stated in the rule, the T+2 requirement would not apply to certain categories of securities, such as exempted securities. 

• Generally, this change would mean that when an investor buys a security, the brokerage firm must receive payment from the investor no later than two business days after the trade is executed.  When an investor sells a security, the investor must deliver to the brokerage firm the investor’s security no later than two business days after the sale.  For example, if an investor sells shares of a particular stock on Monday, the transaction would settle on Wednesday.
   
• The amended rule would apply the T+2 settlement cycle to the same securities transactions currently covered by the T+3 settlement cycle.  These include transactions for stocks, bonds, municipal securities, exchange-traded funds, certain mutual funds, and limited partnerships that trade on an exchange. 
   
• The compliance date for the amendment to Rule 15c6-1(a) is Sept. 5, 2017, which is consistent with the target implementation date set by the Industry Steering Committee.  

SEC, National Bank of Belgium Agree to Enhanced Cooperation and Information Sharing Regarding Euroclear

The Securities and Exchange Commission today announced that it has entered into an arrangement with the National Bank of Belgium to enhance cooperation and information sharing regarding expanded services by Euroclear Bank, which provides clearance and settlement through its operation of the Euroclear System.

Brussels-based Euroclear Bank is subject to prudential supervision and oversight by the National Bank of Belgium as a credit institution and as a clearing agency.  The SEC granted Euroclear’s predecessor an exemption from registration as a clearing agency in 1998, allowing it to provide clearing services for U.S. government securities.  On Dec. 16, 2016, the SEC approved Euroclear’s application to modify its exemption from registration, enabling it to also provide limited clearing agency services for U.S. equity securities.

On March 9, 2017, the SEC and the National Bank of Belgium added an addendum to their 2001 Understanding Regarding An Application of Euroclear Bank for an Exemption under U.S. Federal Securities Laws regarding Euroclear’s clearing activities in the U.S., enhancing their ability to exchange information about Euroclear’s new services.

“This addendum will expand the signatories’ ability to cooperate and exchange information related to Euroclear Bank and augment the SEC’s oversight of Euroclear Bank’s activities under its exemption order,” said Paul A. Leder, Director of the SEC’s Office of International Affairs.

Auditor Charged With Insider Trading on Client’s Nonpublic Information

The Securities and Exchange Commission today announced that an auditor based in the Silicon Valley has agreed to settle charges that he traded on inside information about a client on the verge of a merger.

The SEC’s order finds that through his work at an independent audit firm, Nima Hedayati learned that Fremont, Calif.-based Lam Research Corporation was making preparations to acquire Milpitas, Calif.-based KLA-Tencor Corporation.  The two companies manufacture equipment used in the creation of semiconductors. 

According to the SEC’s order, Hedayati proceeded to purchase out-of-the money call options in KLA common stock in his brokerage account as well as his fiancée’s brokerage account, and he also encouraged his mother to purchase KLA common stock.  After merger plans were publicly announced, KLA’s stock price increased nearly 20 percent, and Hedayati and his mother collectively profited by more than $43,000 from the illegal trades.  Hedayati’s employer terminated him when it discovered his misconduct.

“Hedayati abused his important position of trust and responsibility by illicitly trading on an audit client’s nonpublic information in a quest for an easy profit, and it wound up costing him a lot more in the end,” said Jina Choi, Director of the SEC’s San Francisco Regional Office.

Without admitting or denying the SEC’s findings, Hedayati agreed to pay disgorgement of $43,027.59 plus $1,269.70 in interest and a $43,027.59 penalty for a total of more than $87,000.  Hedayati agreed to be suspended from appearing and practicing before the SEC as an accountant, which includes not participating in the financial reporting or audits of public companies.  The SEC’s order permits him to apply for reinstatement after five years.

The SEC’s investigation was conducted by Matthew Meyerhofer and supervised by Tracy L. Davis in the San Francisco office.  The SEC appreciates the assistance of the Financial Industry Regulatory Authority.

SEC FOIA Office Receives Award for Exceptional Service

The Securities and Exchange Commission today announced that its Office of Freedom of Information Act (FOIA) Services was recognized by the U.S. Department of Justice for “exceptional service” by FOIA professionals. 

The award to a team of 28 professionals recognized their work in handling a growing volume of FOIA requests while reducing the office’s backlog. Between fiscal 2010 and fiscal 2016, FOIA requests to the SEC rose by 38 percent while the number of completed requests in that period increased by 40 percent. 

“This award is a well-deserved recognition of the SEC’s FOIA team for their efforts to keep our agency open and accountable to the American people by building one of the best FOIA programs in the Federal Government,” said SEC Acting Chairman Michael Piwowar. “We depend on the trust of the public to serve on their behalf, and it is our responsibility to earn that trust by ensuring the freedom of information.”

Despite being a medium-sized agency, the SEC processes FOIA requests at a level received at much larger federal agencies, averaging nearly 15,000 per year in each of the last four years. In addition to increased volume, the FOIA requests to the agency have become increasingly complex. While many requests previously involved minimal time and effort to process, they now often entail multiple records over a span of years, resulting in hundreds or thousands of pages that require line-by-line reviews.

The Department of Justice award for exceptional service by a FOIA professional or team of FOIA professionals was presented at a ceremony at the Department of Justice to kickoff Sunshine Week, an annual event to highlight the importance of open government. 

The SEC’s Office of FOIA Services promotes transparency in government by making SEC records available to the public to the greatest extent possible under the Freedom of Information Act. The office is committed to providing a timely and efficient response to each of the requests for SEC documents and records it receives each year.