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News
August 6, 2015

SEC Program of ‘Flipping Witnesses’ Comes Under Scrutiny

The Wall Street Journal today spotlights the Securities and Exchange Commission’s (SEC) expanded “cooperation program” (which the Journal refers to as “flipping witnesses”), that takes a longtime practice of criminal prosecutors and applies it to the agency’s civil actions related to alleged securities violations.

“The SEC touts the cooperation program as a vital source of testimony for enforcing against financial wrongdoing. Critics, however, worry that key safeguards on the use of cooperators in criminal cases are lacking in the SEC’s administrative courts, where the agency brings the cases, appoints and pays the judges, has first say on appeals and the power to decide what to fine the cooperator after he or she testifies,” reports the Journal.

Read the full story here.

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