S.E.C. Changes Its Policy on Firms’ Admissions of Guilt - NYTimes.com

S.E.C. Changes Its Policy on Firms’ Admissions of Guilt - NYTimes.com:

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WASHINGTON — The Securities and Exchange Commission, in a fundamental policy shift, said Friday that it would no longer allow defendants to say they neither admit nor deny civil fraud or insider trading charges when, at the same time, they admit to or have been convicted of criminal violations.

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Joshua Roberts/Bloomberg News

Robert Khuzami said that, in some cases, defendants would not be able to settle S.E.C. fraud charges without admitting wrongdoing.

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Justin Maxon/The New York Times

Federal District Judge Jed S. Rakoff was critical of the S.E.C.'s “neither admit nor deny” policy.

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