Analyst Summary: Yesterday, 25-Jul-2016, Mr. Brad Berning, a senior analyst with Craig-Hallum, published a research report in which he wrongly concluded that his, “SEC FOIA Request Reveals No SEC Investigation Into BOFI”.
Mr. Berning’s misguided conclusion about the absence of SEC activity at BOFI primarily appears to be the result of good-faith interpretative errors. But they are errors nonetheless. Our own letter from the SEC confirmed enforcement proceedings were on-going for BOFI as of 31-May-2016. This was and remains undisclosed. We published our findings on 09-Jun-2016.
In this report we explain the flaws in Mr. Berning’s analysis that led him to reach the conclusions he did. But his report did create uncertainty as to whether BOFI has an SEC probe. Given this, we recommend you call upon BOFI management to answer this very simple question: What contact has BOFI had with the SEC’s Division of Enforcement at any time in the past year, and what was the nature of that contact? The answer should be none. But watch out: We’ve seen companies with SEC probes that wait until the day after an earnings call to make an SEC filing in which they disclose an SEC probe.
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Notes: The SEC did not disclose the details on investigations referenced above. The SEC reminds us that its assertion of the law enforcement exemption should not be construed as an indication by the Commission or its staff that any violations of law have occurred with respect to any person, entity, or security. New SEC investigative activity could theoretically begin or end after the date covered by this latest information which would not be reflected here.
Better Disclosure for Better Decisions.®
Our Disclosure Insight® reports provide commentary and analysis on public company interactions with investors and with the SEC. They are heavily reliant on our expertise with using the Freedom of Information Act.
