The SEC is a pushover in comparison to Chinese regulators.
From Reuters: "China executed four people, including employees of two of its Big Four state banks, for fraud totaling $15 million. "
In some sick, weird, and bizarre way this story is more evidence that selling shares to the public is a means of reducing conflicts that arise from information asymmetries. Apparently these (and other) cases of fraud became known as China prepared to see bank shares to the public. Wow, talk about your due-diligence!
BTW I wanted to thank the person who sent me this, but he said not to mention him by name. So I won't say thanks. ;) but I will mention that his story came from a blog that I had never seen (which is not overly surprising, I an still pretty new to this) http://caps.blogspot.com/ It is a Corporate Law Blog. While it may be too technical for the non lawyers among us, it is interesting and definitely should be a "must read" for those wanting to get into corporate law. (Tim are you reading?)