by Bill Singer
DRAMATIC SEC Internal Investigation. READ Full-Text OIG Report Now Online
August 11, 2014
Securities and Exchange Commission ("SEC") Commissioner Michael Piwowar expressed concerns to SEC Chair Mary Jo White that the deliberations and voting during a September 12, 2013, Executive Session Commission Meeting about J.P. Morgan had been disclosed without authorization to Reuters reporter Sarah Lynch. In response to the Piwowar's concerns, investigators from the SEC's Office of Inspector General ("OIG") conducted an investigation but were ultimately unable to conclude which specific individual or individuals had improperly disclosed information from meeting.
OIG determined that Commissioner Luis Aguilar and two SEC staff members had, in fact, separately spoken with Lynch. Further, OIG determined that one SEC staff member had spoken with another Reuters reporter, Emily Flitter, around the time that the cited information was improperly disclose. OIG found that one of those employees may have confirmed certain information.
As a result of the investigation, OIG learned that Commissioner Aguilar had transmitted nonpublic information over non-secure email; and, in addition, that one
employee may have improperly conducted SEC business using his personal
non-secure email.
READ the FULL-TEXT
Report of Investigation: Unauthorized Disclosure of Nonpublic
Information From Executive Session Commission Meeting (SEC Office of Inspector General, Case #OIG-601,
March 5, 2014)