Defendant Name: Moody's Investors Service, Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Moody's Corporation
SIC Code: 7323
CUSIP: 61536910

Initial Case Details

Legal Case Name In the Matter of Moody's Investors Service, Inc.
First Document Date 28-Aug-2018
Initial Filing Format Administrative Action
File Number 3-18688
Allegation Type Other

Violations Alleged

Other
• Sections 15E(c)(3)(A), 17(a)(1) Exchange Act; Rule 17g-2(a)(2) Exchange Act

Resolutions

First Resolution Date 28-Aug-2018
Headline Total Penalty and Disgorgement $15,000,000

Related Documents:

2018-169_34-83965 28-Aug-2018 Press Release--Administrative Proceeding
SEC Charges Moody's With Internal Controls Failures and Ratings Symbols Deficiencies
According to the Commission: "Moody's failed to establish and document an effective internal control structure as to models that Moody's had outsourced from a corporate affiliate and used in rating RMBS from 2010 through 2013. Moreover, Moody's failed to maintain and enforce existing internal controls that should have been applied to the models. Ultimately, Moody's corrected more than 650 RMBS ratings with a notional value exceeding $49 billion, due, in part, to errors in the models. Also, in 54 instances, Moody's failed to document its rationale for issuing final RMBS ratings that deviated materially from model-implied ratings."
34-83965 28-Aug-2018 Administrative Proceeding
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order
According to the Commission: "MIS failed to conduct, or take reasonable steps to ensure that MA conducted, adequate quality assurance processes with regard to the models, which, in turn, led to MIS's failure to timely detect and prevent numerous errors in the models that MIS used in the credit rating process for RMBS beginning in 2010."

Related Actions:

In the Matter of Moody's Investors Service, Inc.
Moody's Investors Service, Inc.