The Securities and Exchange Commission pursued an increased number of enforcement actions in fiscal year 2018 and fined companies and individuals nearly $4 billion in the same period.
The SEC said in its annual report that total enforcement actions totaled 821, up 9 percent from 754 in fiscal 2017. Meanwhile, it collected $3.9 billion in disgorgement and penalties in fiscal 2018, up from $3.7 billion the previous year. It also said it returned $794 million to harmed investors. The fiscal year runs from October 2017 through September of this year.
Excluding SEC enforcement actions against municipalities and underwriters of municipal securities, the SEC brought the most enforcement actions since at least fiscal 2004. Those numbers were also achieved with about 10 percent fewer enforcement staff and contractors from this year to last. The Commission remains under a hiring freeze that started in 2016.
“The Enforcement Division has been and continues to be extremely successful in its efforts to deter bad conduct and effectively remedy harms to investors,” said SEC Chairman Jay Clayton. “As this report demonstrates, the Division’s approach to enforcement is multifaceted and outcomes-oriented with the interests of our Main Street investors front of mind.”
Of the 821 enforcement actions, the SEC brought a total of 130 cases involving securities offerings, 121 cases for delinquent filings, 106 cases involving securities issuer reporting and disclosure, and 13 cases involved violations of the Foreign Corrupt Practices Act.
“This year’s report again shows a broad range of significant enforcement actions, a thoughtful approach to remedies and relief, and the return of substantial sums to investors,” said Steven Peikin, co-director of the SEC’s Enforcement Division.
Peikin’s co-director also highlighted the goal of protecting investors in comments on the annual report. “As stewards of the SEC’s Division of Enforcement, our goal is to continue to protect investors, deter misconduct, punish wrongdoers and keep our markets the safest and strongest in the world,” said Stephanie Avakian, co-director of the SEC’s Division of Enforcement.
The SEC also focused some of its enforcement muscle on cyber-crimes this past year. The Commission says it brought 20 stand-alone cyber cases in 2018, including cases involving initial coin offerings and digital assets. At the end of the fiscal year, it had more than 225 cyber-related investigations ongoing. 
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