Author: Mark Matousek / Source: INSIDER
- The Securities and Exchange Commission‘s allegation that Tesla CEO Elon Musk is in contempt of the federal court that approved a settlement between Musk and the agency is highly unusual, the former SEC senior counsel Thomas Gorman told Business Insider.
- It’s particularly rare for the SEC to bring contempt proceedings against a corporate executive, rather than the operator of an illegal enterprise, such as a Ponzi scheme, Gorman said.
- The most likely outcome is that Musk is sanctioned, fined, and given a stern warning about the consequences of disobeying his settlement with the SEC, Peter Haveles, a partner at Pepper Hamilton, said.
The Securities and Exchange Commission’s (SEC) allegation that Tesla CEO Elon Musk is in contempt of the federal court that approved a settlement between Musk and the agency is highly unusual, the former SEC senior counsel Thomas Gorman told Business Insider.
Being in contempt of court means either misbehaving in a courtroom or deliberately disobeying a court order (the SEC is accusing Musk of the latter). The SEC rarely brings contempt proceedings, Gorman said.
“There just aren’t very many of these cases around,” he said.
It’s particularly rare for the SEC to bring contempt proceedings against a…
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