Kevin Flinchbaugh Corporate Governance/ Chapter 9 June 6, 2011 (Online edition) http://online.wsj.com/article/SB10001424052702304474804576369560180079014.html By Chad Bray The other day I read an article from the Wall Street Journal, which was called Ex-Madoff Employee Lipkin Pleads Guilty to Bank Fraud, Other Charges , it was definitely related to Chapter 9 out of the Corporate Governance book where it talked about the Securities and Exchange Commission. As I learned from reading the book, “the SEC act of 1933 was intended to correct some of the evils which have been so glaringly revealed in the private exploitation of the public’s money” The book breaks down the problems of the SEC into two categories: reporting and punishment. The punishment section of the book relates to the article. The power that the SEC can enforce for punishment is limited to bringing civil charges only and that only a fined would be the outcome, no jail sentence. The article states that the SEC filed a civil fraud lawsuit against Mr. Lipkin. Part of the Sarbanes-Oxley act makes it easier to
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