{"id":1782,"date":"2010-12-28T07:00:07","date_gmt":"2010-12-28T15:00:07","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=1782"},"modified":"2010-12-28T07:00:07","modified_gmt":"2010-12-28T15:00:07","slug":"compliance-sarbanes-oxley-have-non-compliance-penalties-really-been-that-bad","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/compliance-sarbanes-oxley-have-non-compliance-penalties-really-been-that-bad\/","title":{"rendered":"Compliance: Sarbanes-Oxley: Have Non-Compliance Penalties Really Been that Bad?"},"content":{"rendered":"

Compliance with Sarbanes-Oxley<\/a> (SOX) has had companies worried for 8 years since it was passed in the summer of 2002. \u00a0Is it worth the worry and the huge effort that it entails to comply? \u00a0A study out this month from NERA Economic Consulting<\/a> shows that companies’ worries have been fully \u00a0justified. \u00a0The number of cases brought by the SEC have been rising and the monetary value of the penalties imposed have been very steep.<\/p>\n

The NERA report found that the number of settlements of individuals with the SEC increased 25 percent in 2010 to 526, and the number of settlements in 2010 made with companies was 168. \u00a0The third largest \u00a0settlement since the passage of SOX was made in 2010 with Goldman Sachs for $550 Million.<\/p>\n

The NERA report lists the highest 10 penalties paid because of violation of SOX since the inception of the law:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\nCompany<\/td>\nYear<\/td>\nAmount of Settlement
\nin $Million<\/td>\n		Reason\/Description<\/td>\n<\/tr>\n
1<\/td>\nAmerican International Group, Inc.<\/td>\n2006<\/td>\n$800<\/td>\nPublic Company Misstatements\/Omissions<\/td>\n<\/tr>\n
2<\/td>\nWorldCom, Inc.<\/td>\n2003<\/td>\n$750<\/td>\nPublic Company Misstatements\/Omissions<\/td>\n<\/tr>\n
3<\/td>\nGoldman, Sachs & Co.<\/td>\n2010<\/td>\n$550<\/td>\nMisrepresentations to Financial Services Customers<\/td>\n<\/tr>\n
4<\/td>\nCitigroup Global Markets Inc.<\/td>\n2003<\/td>\n$400<\/td>\nAnalyst Fraud<\/td>\n<\/tr>\n
5<\/td>\nFederal National Mortgage Association<\/td>\n2006<\/td>\n$400<\/td>\nPublic Company Misstatements\/Omissions<\/td>\n<\/tr>\n
6<\/td>\nSiemens Aktiengesellschaft<\/td>\n2008<\/td>\n$350<\/td>\nFCPA<\/td>\n<\/tr>\n
7<\/td>\nInvesco Funds Group, Inc.<\/td>\n2004<\/td>\n$325<\/td>\nMarket Timing\/Late Trading<\/td>\n<\/tr>\n
8<\/td>\nState Street Bank and Trust Company<\/td>\n2010<\/td>\n$314<\/td>\nMisrepresentations to Financial Services Customers<\/td>\n<\/tr>\n
9<\/td>\nTime Warner Inc.<\/td>\n2005<\/td>\n$300<\/td>\nPublic Company Misstatements\/Omissions<\/td>\n<\/tr>\n
10<\/td>\nPrudential Equity Group LLC<\/td>\n2006<\/td>\n$270<\/td>\nMarket Timing\/Late Trading<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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Compliance with Sarbanes-Oxley (SOX) has had companies worried for 8 years since it was passed in the summer of 2002. \u00a0Is it worth the worry and the huge effort that it entails to comply? \u00a0A study out this month from…<\/span><\/p>\n

Read more ›<\/a><\/div>\n

<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,30],"tags":[],"class_list":["post-1782","post","type-post","status-publish","format-standard","hentry","category-compliance","category-sarbanes-oxley"],"_links":{"self":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/1782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/comments?post=1782"}],"version-history":[{"count":0,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/1782\/revisions"}],"wp:attachment":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/media?parent=1782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/categories?post=1782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/tags?post=1782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}