The SEC announced today that former Goldman Sachs investment banker Neil M.M. Morrison has agreed to pay $100,000 and accept a bar from the securities industry for five years to settle the agency's charges related to a "pay-to-play" scheme. In September 2012, the SEC alleged in administrative proceedings against Goldman and Morrison that Morrison made undisclosed campaign contributions to then-Massachusetts state treasurer Timothy P. Cahill while Cahill was a candidate for governor. Instead of contributing cash to Cahill, however, Morrison allegedly used Goldman's resources to carry out campaign activities including fundraising, drafting speeches, communicating with reporters, approving personnel decisions, and interviewing at least one possible running mate. The SEC noted at the time that that the case marked the first SEC enforcement action for pay-to-play violations involving 'in-kind' non-cash contributions to a political campaign.

Goldman agreed to settle the SEC's last year by paying $7,558,942 in disgorgement, $670,033 in prejudgment interest, and a $3.75 million penalty--the largest penalty ever imposed by the SEC for Municipal Securities Rulemaking Board (MSRB) pay-to-play violations. Although the $100,000 penalty that Morrison will pay is far smaller, Elaine C. Greenberg, Chief of the SEC Enforcement Division's Municipal Securities and Public Pensions Unit, stated today that it is nonetheless "the largest penalty ever imposed by the SEC against an individual for violations of the MSRB pay-to-play rules, and the first time an individual is barred from the securities industry for these violations." Greenberg added that the sanctions show that the SEC takes "abuses of the pay-to-play rules in the municipal securities industry very seriously and will hold individuals accountable for their violations.”