Sen. Chuck Grassley of Iowa last week expressed concern to the Securities and Exchange Commission (SEC) about the security of a public filings database after the database apparently was used for fake company takeover bids involving Avon and the Rocky Mountain Chocolate Factory. The SEC today named a Bulgarian man as being an architect behind the hoaxes that fraudulently drove up share prices. Grassley made the following comment on today’s news.
“It’s reassuring that the SEC found the person it thinks was responsible in these cases. But I’m still concerned about whether there are systemic problems that could lead to this happening again. Catching someone after the fact means the damage to the markets already has been done. I look forward to the SEC’s response to my inquiry.”
Grassley’s letter to the SEC last week is available here.
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