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Without admitting or denying the SEC’s charges, the Pennsylvania credit ratings firm will pay a $1.7 million penalty and more than $146,000 in disgorgement and interest to settle the charges, the SEC said.
The SEC said the firm’s CEO, Sean Egan, became involved and was influenced by the business and marketing activities concerning a client while determining a credit rating for that client, which created a prohibited conflict of interest. The firm also failed to establish, maintain, and enforce policies and procedures reasonably designed to manage such conflicts of interest.
