The second half of 2020 saw U.S. Securities and Exchange Commission ("SEC") enforcement activity continue to rebound from deep uncertainty and change caused by the COVID-19 pandemic. All told, the SEC—despite a full-scale transition to telework and remote operations—was largely able to conduct "business as usual," bringing more than 700 enforcement actions during this fiscal year.

This White Paper reviews SEC enforcement activity, specifically in the areas of financial reporting and disclosure, with specific focuses on accounting fraud, disclosure fraud, non-GAAP (generally accepted accounting principles) metrics and key performance indicators, and the Division of Enforcement's recent use of data analytics in its investigative processes. The White Paper also examines recent SEC developments, most notably Congress's defense authorization bill, which significantly boosts SEC enforcement sanctions.