SEC Says Egan-Jones Made False Claims in Regulatory Filings
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The U.S. Securities and Exchange Commission accused Egan-Jones Ratings Co. and founder Sean Egan of making misrepresentations about the firm’s experience rating asset-backed and government securities in a 2008 application to become a nationally recognized statistical ratings organization.
Egan-Jones falsely claimed in the application that it had about 150 outstanding ABS issuer ratings and 50 government ratings, the SEC said today in an administrative proceeding authorized by commissioners last week. At the time of the July 2008 application, the Haverford, Pennsylvania-based firm hadn’t issued any such ratings and therefore didn’t meet requirements for registration as a NRSRO, the SEC said.