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Mo. Lawmakers Consider Tougher Securities Proposal

Accounting scandals last year sparked legislation in Congress that made some securities penalties tougher.
(Reuters File Photo)
Accounting scandals last year sparked legislation in Congress that made some securities penalties tougher.

By AP/KWMU

Jefferson City, MO. – There's a push in Jefferson City to enact higher penalties for people who violate Missouri's securities laws. Some of the provisions mirror federal law passed last year because of scandals at Enron and WorldCom.

The legislation would criminalize destroying or hiding documents to avoid subpoenas, and it companies with more than 25 investors in Missouri would be banned from giving their top management personal loans.

Top Republican officials pledged to make the proposals a priority.

Other provisions are modeled on a national proposal to develop uniform state securities laws, which supporters say is necessary to help protect Missouri investors.

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