American Samizdat

Wednesday, September 07, 2011. *
A year after it was warned that it might be violating federal law, the Securities and Exchange Commission is still breaking the law by destroying records of closed enforcement cases, a lawyer in the agency’s enforcement division has alleged.

In addition, the purging of files has involved a wider range of investigative documents than previously reported, according to a signed statement by the enforcement lawyer.

The new allegations are contained in a statement dated Tuesday by Darcy Flynn, a longtime SEC employee involved in managing records for the enforcement division.

Flynn’s lawyer, Gary Aguirre, sent the statement and an accompanying narrative to SEC Chairman Mary L. Schapiro and SEC Inspector General H. David Kotz. Aguirre also addressed copies to several lawmakers, calling on Congress to step in.

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