© Reuters. FILE PHOTO: The seal of the U.S. Securities and Trade Fee hangs on the wall at SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst/File Photograph
WASHINGTON (Reuters) – The U.S. Securities and Trade Fee (SEC) mentioned on Tuesday that it has charged Egan-Jones Scores Co. and its chief government with battle of curiosity violations.
With out admitting or denying the SEC’s prices, the Pennsylvania credit score scores agency can pay a $1.7 million penalty and greater than $146,000 in disgorgement and curiosity to settle the costs, the SEC mentioned.
The SEC mentioned the agency’s CEO, Sean Egan, grew to become concerned and was influenced by the enterprise and advertising and marketing actions regarding a consumer whereas figuring out a credit standing for that consumer, which created a prohibited battle of curiosity. The agency additionally failed to determine, keep, and implement insurance policies and procedures moderately designed to handle such conflicts of curiosity.