Lost SEC Texts From Gensler Could Hinder FOIA Responses, OIG Says

• What happened: An automated policy disabled texting and a factory reset erased data on Gensler’s government phone.

• The Office of Inspector General (OIG) found OIT failed to back up nearly a year of messages, reported in January 2024.

• Impact: The loss may complicate Freedom of Information Act (FOIA) responses and prompted OIG recommendations to strengthen records management.

Meta description: SEC lost text messages: OIG finds nearly a year of Gary Gensler’s texts permanently erased; learn what happened and how FOIA responses may be affected.

What were the key findings of the OIG report?

SEC lost text messages from former Chair Gary Gensler due to a 2023 automated policy and a subsequent factory reset, which permanently deleted messages from October 2022 to September 2023. The OIG concluded OIT’s processes did not preserve federal records and issued recommendations to improve device and records management.

How did the data get erased?

Gensler discovered missing applications on his government-issued smartphone on Sept. 6, 2023. OIT personnel performed a factory reset consistent with a new, “poorly understood and automated” policy intended to disable texting. That reset permanently deleted the device’s data because backups had not been maintained for nearly a year.

Why does this matter for FOIA and records retention?

The erased text messages may be relevant to federal Freedom of Information Act (FOIA) requests. Without preserved records, the SEC could be unable to fully respond to certain FOIA requests. The OIG has issued recommendations aimed at strengthening controls over mobile devices and improving federal records management to reduce future risks.

When did the SEC discover the missing messages?

Gensler noticed missing apps on his device on Sept. 6, 2023, and OIT later acknowledged a factory reset erased data. In January 2024, OIT reported the erasure of messages sent between October 2022 and September 2023 to the Office of Inspector General, which then reviewed the incident.

What recommendations did the OIG make?

The OIG recommended: (1) improved backup procedures for government-issued devices, (2) clearer policies and change management for automated device controls, and (3) enhanced oversight of the Office of Information Technology to ensure federal records are preserved. These measures aim to reduce the risk of future data loss and support FOIA compliance.

Frequently Asked Questions

Which messages were lost and for what period?

The OIG found messages sent and received on Gary Gensler’s government phone between October 2022 and September 2023 were permanently deleted after an automated policy and a factory reset by OIT.

Will this affect any investigations or legal matters?

Lost messages could limit the SEC’s ability to fully respond to FOIA requests and may affect investigations where those communications would be relevant. The OIG has proposed remedial steps to mitigate future records gaps.

Who investigated the data loss?

The Office of Inspector General (OIG) of the U.S. Securities and Exchange Commission performed a review and issued recommendations after OIT reported the erasure in January 2024.

Key Takeaways

• Data loss occurred: Nearly a year of Gary Gensler’s texts were permanently erased after an automated policy and a factory reset.
• Records risk: The absence of backups undermined FOIA responses and federal records obligations.
• OIG action: The Office of Inspector General issued recommendations to tighten backup, policy, and oversight controls.

Conclusion

The OIG report shows the SEC lost critical messages from former Chair Gary Gensler due to a poorly managed automated policy and a factory reset, highlighting weaknesses in federal mobile records management. Strengthened backup procedures and clearer policy governance, as recommended by the OIG, are essential to prevent similar losses and protect FOIA compliance going forward.

Published by COINOTAG. Updated: 2024-01-15.