SEC Gets Picked Off Again

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The SEC is finding new and creative ways to tarnish its image. After estimating that it would recover close to $1 billion in assets in the Stanford fraud case, the SEC now finds itself shoulder to shoulder with the guy they intend to prosecute. The receiver in the Stanford case, Ralph Janvey, has petitioned the court to approve $20 million in fees and expenses for work performed on the case since February. However, when the SEC discovered its recovery estimate was about $650 million too high, it petitioned the court to reduce the amount due to the receiver. Team SEC/Stanford have an uphill battle on their hands.

"None of the professionals was retained with the understanding that they would be subjected to deep discounts if the recoverable estate assets were less than the SEC expected," the court filing said.

SEC opposition to Stanford fees unjustified-filing [Reuters]

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