[philip1209]

Can somebody explain whether this can still lead to criminal prosecution?

As I recall from the Theranos stuff - the SEC reached a similar settlement with Elizabeth quickly [1]. My understanding is that they want to protect the markets and get bad actors banned without years of trials. But then, the DOJ came in filed separate charges that will likely take much longer to prosecute, but have the potential for more severe punishment such as prison term.

So - is this a sign that more significant trouble is coming for Rothenberg?

[1] https://www.sec.gov/news/press-release/2018-41

[2] https://www.justice.gov/usao-ndca/pr/theranos-founder-and-fo...

[pm90]

SEC cannot prosecute criminal charges. What they can do is build a case and hand it over to DoJ/FBI for actual criminal prosecution (which as you said can take years).

The taint of an SEC investigation is enough to scare away most investors from the entity though. Which is really helpful.