Recently, SEC Chairman, Mary Shapiro, was called to task for the high number of reported administrative proceedings by Congress.  In particular, the SEC was accused of reporting follow on administrative proceedings as if they were new actions when it announced the yearly enforcement statistics. 

Such reporting gives the indication that the SEC is bringing more cases than  theoretically possible.  Essentially, the SEC is being accused of “double-counting,” bringing an injunction action and an administrative proceeding arising from the same facts.  Certain reports indicate that the SEC reported 30% of its 735 enforcement actions were merely follow on administrative proceedings to previously filed injunctive actions.  (By the way, the number of enforcement actions in 2011 was the highest ever filed by the SEC.)  Various members of Congress have questioned this practice and believe it provides a false impression.

In sum, although technically accurate, the SEC effectively is providing incomparable information.  There is little extra work necessary to bring a follow on administrative proceeding to a previously filed injunctive action, without much additional regulatory benefit.  In any event, I suppose Disraeli was correct, “there are lies, damn lies and then there are statistics.”