SEC fined for using UGA library and Auburn library

A federal judge has ordered the Securities and Exchange Commission to pay Auburn University $1 million to resolve a lawsuit alleging the school improperly used its library to promote its university.

UGA’s Board of Trustees sued the SEC last year accusing the SEC of violating the law by using its library as a front for illegal activities.

The SEC agreed to pay $1,400 to Auburn in a settlement on Tuesday, a court filing said.

The university’s board said in a statement the settlement will “allow us to continue to operate the university’s public library as efficiently as possible.”

The SEC said it had previously agreed to settle with Auburn on March 4.

UGa said in the lawsuit that the SEC used the university library as part of its business in violation of the Clayton Act, a federal law designed to protect students from unlawful educational programs.

SEC Commissioner Michael Johnson is set to testify before the SEC’s enforcement subcommittee on Tuesday.

SEC said in March it was investigating the SEC and Auburn University after it learned that the university used the SEC as a promotional tool for illegal fundraising and that SEC employees used the library to solicit donations and advertise Auburn University as a “private university.”

SEC said the SEC has been notified that UGA will pay $600,000 for the costs of the investigation.

Auburn is facing additional lawsuits from its employees, students and alumni.

In July, UGA fired former SEC vice president of public affairs and SEC general counsel Mark R. Williams, who was charged with fraud after the SEC alleged he improperly solicited donations from donors through a university fundraising website.

SEC spokesman John Kilduff said in July that SEC was working with UGA to resolve all allegations.

Auburn said in its complaint that Williams was removed from the university board in April, and he was replaced by the SEC director of public relations.

The lawsuit said the university improperly used the Auburn library to recruit and promote its campus.