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Lie Study Leading to SEC Charges

Securities and Exchange Commission Chairman Christopher Cox told reporters on Monday that the regulator will bring the first civil charges "very soon" in the stock options timing scandal, according to Reuters. Cox acknowledged that there are also criminal investigations being conducted by other federal regulators, but reportedly stressed, "I can only speak to the civil charges for which we are responsible, but I think, very soon." A new academic study, released earlier on Monday, concluded that 2,000 companies have used backdated stock options to sweeten their top executives' pay packages. The study, cited by the New York Times, was authored by ERIK LIE, a finance professor at the Tippie College of Business at the University of Iowa, and Randall Heron, of the Kelley School of Business at Indiana University.

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