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Thomas A. Sporkin quoted in Agenda article, “SEC after shutdown: ‘It’s going to be tough’”


Thomas A. Sporkin

Thomas A. Sporkin was quoted on January 28, 2019 in an Agenda article, “SEC after shutdown: ‘It’s going to be tough,’” which discussed the aftermath of the government shutdown and how it affects the entire agency from initial public offerings to enforcement and investigative work. The article stated, “Where sources agree is on the long-term consequences that will flow from the weeks during which the SEC was not fully staffed. To be sure, while the immediate impacts for companies and investors alike are sure to be felt, sources suggest that though a deal has been reached to reopen the government, the backlog at the SEC created by the shutdown is going to present a tremendous challenge.”

Sporkin noted, “As is true with the rest of the agency, it’s likely that a skeleton crew was tasked with the responsibility of reviewing tips related to securities fraud and other wrongdoing. The SEC’s shutdown plan, in fact, indicates that while such tips and complaints could be made during the shutdown, limited staff were available to attempt to respond to certain critical matters, including allegations of ongoing fraud and misconduct.” He added, “It’s going to be tough to deal with the accumulation. The attorneys may have to take some shortcuts when they start playing catch-up. Which may be good news to people being investigated. But to whistle-blowers submitting important information to the SEC, it’s not good news. It’s a hard process to come back and start reviewing, turning the lights back on.

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