{"id":1407,"date":"2014-02-27T23:26:58","date_gmt":"2014-02-27T23:26:58","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2014\/02\/sec_staff_sold_shares_before_e"},"modified":"2022-03-11T08:59:43","modified_gmt":"2022-03-11T14:59:43","slug":"sec-staff-sold-shares-before-e","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-staff-sold-shares-before-e\/","title":{"rendered":"SEC Staff Sold Shares Before Enforcement Actions in Securities Cases Were Made Public, Reports Study"},"content":{"rendered":"<p>\t\t\t\tBloomberg is reporting that according to a new study, US Securities and Exchange Commissioner employees who own stock in companies that the agency is investigating are more likely than other investors to sell their shares in the months prior to the regulator&#8217;s announcement of an enforcement action. Shivaram Rajgopal, an Emery University accounting professor, and one of the study&#8217;s co-authors, said that there appears to be a suspect pattern of behavior going on even though the findings are not proof of misconduct.<\/p>\n<p>Rajgopal and co-author Roger M. White, a Georgia State University doctoral student, obtained records from the SEC through a request they made under the Freedom of Information Act. Unfortunately, because individuals weren&#8217;t named, it was impossible to figure out whether the agency employees who traded were in jobs that might have given them insider knowledge about a pending action, and whether the action could lower stock prices, or if money was lost or made in the transactions.<\/p>\n<p>Beginning August 2010, SEC ethics rules have forbidden employees from selling or buying shares in companies that are under investigation. They also have to get permission before trading, cannot trade in any financial firm that the SEC directly regulates, and they  generally must hold any stock that they buy for six months before selling.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/sec-staff-sold-shares-before-e\/\"  title=\"Continue Reading SEC Staff Sold Shares Before Enforcement Actions in Securities Cases Were Made Public, Reports Study\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bloomberg is reporting that according to a new study, US Securities and Exchange Commissioner employees who own stock in companies that the agency is investigating are more likely than other investors to sell their shares in the months prior to the regulator&#8217;s announcement of an enforcement action. Shivaram Rajgopal, an Emery University accounting professor, and [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3760],"tags":[],"class_list":["post-1407","post","type-post","status-publish","format-standard","hentry","category-sec-enforcement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SEC Staff Sold Shares Before Enforcement Actions in Securities Cases Were Made Public, Reports Study &#8212; Investor Lawyers Blog &#8212; February 27, 2014<\/title>\n<meta name=\"description\" content=\"Bloomberg is reporting that according to a new study, US Securities and Exchange Commissioner employees who own stock in companies that the agency is &#8212; February 27, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/sec-staff-sold-shares-before-e\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"SEC Staff Sold Shares Before Enforcement Actions in Securities Cases Were Made Public, Reports Study &#8212; 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