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Shutdown and the SEC: Expect headaches but no reprieve for fraudsters
['Reporter', 'Financial Planning']
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If you're already in investigators' crosshairs because of a big Ponzi scheme, the current government shutdown won't bring you a reprieve, despite the SEC and other agencies operating with skeleton crews.
According to an operations plan the SEC issued in August, only 393 of its 4,289 employees, about 9%, would continue to work during a shutdown.
"If you are working on that type of matter, you would be definitely coming in to work," Block said.
Like many compliance experts and former SEC attorneys, Block said the consequences of the current impasse will grow the longer the shutdown lasts.
Investors will continue to maintain their regulatory compliance expectations during the pause."