SOX Center

Phoenix, a new computer system, should simplify tracking, collecting, and distributing billions of dollars of penalties, says Chairman Cox in his budget statement.

The Securities and Exchange Commission is creating a new office dedicated to disbursing money to investors harmed in securities-fraud cases.

Under the Sarbanes-Oxley Act of 2002, the SEC became the fund holder for the disgorgement and fines it collects in such cases. While the regulator has done a good job of collecting and putting aside the cash, it has fallen behind with getting the money back to harmed investors, according to SEC chairman Christopher Cox. On Tuesday, Cox acknowledged that “too much money is still undisbursed.”

The commission has struggled in identifying claimants and keeping track of the funds, according to Cox. As a result, the SEC is creating the new office and a new computer system, he said during a Congressional appropriations meeting where he discussed President Bush’s proposed $905 million allotment for the SEC’s 2008 budget.

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