As of June 2013 the SEC requires defendants entering into settlements to SEC enforcement actions, in certain “egregious” cases, as a non-negotiable condition, to admit wrongdoing.
In September 2013, JP Morgan Chase & Co., settled SEC fraud charges resulting in a $200 million SEC penalty and admitting the facts of the underlying SEC charges citing “woefully deficient accounting controls.” JP Morgan Chase & Co. publicly admitting it violated the federal security laws. In contrast, the Department of Justice has allowed the “no admit, no deny” policy in False Claims Act cases for years, while permitting companies to pay even billions to settle. The time is long overdue to follow the SEC and require corporate and individual admissions of wrongdoing in False Claims Act settlements.
Why not for the False Claims Act?
More information for whistleblowers is located at the Nolan Auerbach & White website.