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SEC alleges Egan-Jones Ratings misrepresented its expertise

The allegations threaten to cripple the ratings agency within months of its controversial call on Jefferies

US securities regulators alleged that Egan-Jones Ratings and its president, Sean Egan, filed inaccurate documents that exaggerated the small credit rating firm's expertise.

The Securities and Exchange Commission said yesterday that Egan-Jones misrepresented how many securities the firm rated as well as the number of years it had been rating those deals. Such information gives investors and regulators insight into the experience of a credit rating firm.

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