Kenneth Rijock

Kenneth Rijock

Saturday, January 14, 2012

FORMER S.E.C. OFFICIAL TO PAY $50,000 TO SETTLE STANFORD FINANCIAL CONFLICT-OF-INTEREST ACCUSATIONS

Spencer Barasch, who was the Director of Enforcement at the Ft. Worth Regional Office of the Securities & Exchange Commission for seven years, has agreed to pay a $50,000 civil fine, to settle conflict of interest charges. The fine levied is the maximum amount permitted by law in a civil case.

The Settlement Agreement, the complete text of which can be viewed here*, involved a dispute over Barasch's post-SEC representation of Stanford Financial Group before the Commission. The document, which also settles any potential criminal liability, recites that Barasch violated an SEC permanent bar to the representation of Stanford. Barasch performed services for, and billed, Stanford, after he left the SEC, which was actively investigating Stanford Financial Geroup's alleged $7bn Ponzi scheme during his employment there.

The Department of Justice press release** provides additional information for readers who require further details.
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*http://pdfserver.amlaw.com/tx/barasch.pdf
** Former Head of Enforcement for the Ft. Worth Office settles Conflict of Interest Allegations
http://justice.gov/usao/txe/2012/edtx-barasch-011312.html

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