SEC Director of the Division of Enforcement Discusses Cooperation Program (with Lofchie Poetry Selection)

SEC Director of the Division of Enforcement (the "Division") Andrew Ceresney discussed the importance and success of the SEC's cooperation program. He delivered his remarks at the University of Texas School of Law.

Mr. Ceresney explained that the SEC's formal cooperation program was launched five years ago to provide for the use of formal cooperation agreements, as well as other tools. The SEC also identified four general considerations for assessing cooperation: (i) assistance provided by the cooperator, (ii) importance of the underlying matter, (iii) interest in holding the individual accountable, and (iv) the profile of the individual.

According to Mr. Ceresney, the Division has signed over 80 cooperation agreements in the past five years. He explained that these agreements are "a staple of criminal prosecutions," especially in cases involving insider trading. Mr. Ceresney also noted that as the cooperation program matures, the Division continues to cultivate witnesses who will testify for the SEC in litigated actions.

Additionally, Mr. Ceresney stated, the Division is considering how the cooperation program should interact with the SEC's admission policy. He expressed the view that the use of admissions is a supplement to the cooperation program, and that even without a cooperation agreement, the approach "provides a way to lock in a witness's version of events before trial to ensure predictable testimony."

Mr. Ceresney also discussed cooperation's benefits for individuals and firms. The Division's recent history, he explained, demonstrates that coming forward and assisting the investigative staff provides benefits in terms of charging decisions, monetary relief and bars.

Lofchie Poetry Selection: "Introduction to Poetry."

See: Mr. Ceresney's Speech.