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January 29, 2020

Asked the Justice Department to Investigate Industry’s Fraudulent Influence on SEC Rulemaking by Engaging in Wire and Mail Fraud

Seeking Justice Dept. Investigation | Industry’s Fraudulent Influence on SEC Rulemaking by Engaging in Wire and Mail Fraud

Better Markets sent a letter to the U.S. Attorney General and the head of the Criminal Division of the U.S. Department of Justice seeking an investigation into reports that industry-allied groups had sent dozens of fraudulent letters to the SEC in support of its proxy access and proxy advisers rulemakings.  The Chairman of the SEC read from a number of these fraudulent letters in support of proposed amendments to proxy voting advice and shareholder proposals during a Nov. 5, 2019 open meeting when he and two other Commissioners voted in favor of the proposals.  According to media reports, this intentional fraud was undertaken for the purpose of deceiving the SEC into taking specific regulatory action sought by the Chamber of Commerce and other industry groups.  In addition to being a corruption of the rulemaking process, it would appear to be a violation of the criminal wire and mail fraud statutes and we have asked the Department of Justice to conduct an investigation (as well as the SEC, other federal regulatory agencies and members of Congress).

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