The S.E.C., in keeping with its normal policy, declined to comment on whether it had looked into the company, DEI Holdings, but there has been no indication that it is doing so.

Just starting an investigation could pose substantial political risks for the agency. The founder of the company, who remained a director and substantial shareholder even after he stepped down from management, is Representative Darrell E. Issa, a California Republican who is chairman of the House Committee on Oversight and Government Reform and has been a harsh critic of the S.E.C.

Read the full story here