The U.S. Securities and Exchange Commission admitted to not being “accurate and candid” in its filings related to Debt Box, later petitioning the court to drop the case.
A group of five Republican lawmakers from the United States Senate have criticized the Securities and Exchange Commission for its actions in a lawsuit against Digital Licensing, doing business as Debt Box.
In a Feb. 7 letter to SEC Chair Gary Gensler, six Republican senators said they were “greatly concerned” by the commission’s conduct in the Debt Box case, claiming that the regulator operated in an “unethical and unprofessional manner.” In December, the SEC admitted in filings with the U.S. District Court for the District of Utah, Northern Division, that it had failed to be “accurate and candid” in its claims that Debt Box closed bank accounts and planned to relocate to the United Arab Emirates.
“Regardless of whether Commission staff deliberately misrepresented evidence or unknowingly presented false information, this case suggests other [emphasis added by authors] enforcement cases brought by the Commission may be deserving of scrutiny,” said the senators. “It is difficult to maintain confidence that other cases are not predicated upon dubious evidence, obfuscations, or outright misrepresentations.”
