Egan-Jones Claims SEC is Targeting Them Unfairly

June 18, 2012 by · Leave a Comment
Filed under: SEC 

Egan-Jones, under investigation by the Securities and Exchange Commission (SEC) for alleged errors in its 2008 registration application, said in Federal court that the SEC “condoned, excused, remained silent” or “very gently and gingerly reprimanded the large firms for conduct which corrupted the ratings process” and helped bring down the economy.

The Courthouse News Service reports that Egan-Jones claims the decision to go after their 20-person agency was made in a closed-door meeting, “‘details of which the SEC leaked to the press in advance,’ but that the SEC let off the hook the giant ratings agencies, which often are paid by the companies they rate, though it’s the big firms that ‘were instrumental in creating inflated and erroneous AAA ratings’ that contributed to the national financial crisis.”

Egan-Jones’ outspoken founder Sean Egan is attempting to have SEC’s administrative proceeding moved to Federal Court to “to prevent violations of due process, equal protection and the First Amendment.”

Egan-Jones also said in court that the SEC targeted them for administrative errors in the application process because SEC agents are trying to position themselves for jobs with big agencies. Being a small operation with fewer job opportunities makes them “an easier target for the congressionally mandated crackdown and less detrimental to the SEC employees’ career prospects.”

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