John Gavin has battled the Securities and Exchange Commission in recent years over his business of finding companies under investigation by the agency and reporting the possible consequences in his newsletter, now called "Disclosure Insight."

This week he launched a new website, disclosureinsight.com, which includes all the SEC-related communications he gets under Freedom of Information Act (FOIA) requests. The SEC typically does not confirm or deny that a company is under investigation when third parties inquires.

"This should make public companies think twice about holding back disclosure of Securities and Exchange Commission (SEC) investigations," Gavin said. "As a publisher and independent research provider, our business has always been about analysis and publishing, not selling FOIA records. Now that we have the platform to release our FOIA records, we hope to compel public companies to improve their disclosure practices when it comes to the SEC and other risks that are so often wrapped in useless boilerplate or hidden from investors."

Gavin, 46, a former Ameriprise Financial analyst, started the former SEC Insight in 2000. He unearthed early warning signals on several companies that got into trouble, including Tyco, Enron and Conseco -- some of the biggest corporate scandals of the decade.

Gavin's firm provides for free an index of companies it's watching, and the SEC data it has received.

How does Gavin make a buck?

Well, if you want, for example to learn his opinion on the future of Circuit City, you'll have to pay $2,000 for a report, which includes an analysis of 100 risk factors that Disclosure Insight uses to determine if the stock could take a hit as a result of any government investigation.

"It's expensive, but it saves an analyst 50 hours of work," said Gavin, who has an undisclosed list of institutional investors and hedge funds. "Our business is improving and we're getting into places we haven't before. Boston is one of the biggest mutual-fund centers in the world, and we have three of the largest players in Boston as clients. And they would get mad if I told you who they are."

Gavin also puts out positive reports when he and his researchers find nothing to be concerned about.

"We say good things if we run our 100-item risk profile and we don't find anything. For example, we looked at Pepsico and McDonald's and found they don't appear to carry any abnormal risk. We try to warn people who the SEC is looking at, but we focus on our risk profile, and if we find dirt, we'll warn you. And if we find nothing we'll let you know that. There are opportunities either way. The market always presents that."

Last summer, a federal judge declined to sanction the SEC at the end of a three-year lawsuit brought by Gavin's tiny research firm.

The SEC is charged with ensuring that public companies fully and promptly disclose important information to investors. But the agency is notoriously slow and unresponsive when it comes to disclosing the people and reasons behind its own investigations.

The agency argued that any related disclosures aren't anybody else's business until it's completely done and has reached an agreement or prepared a civil case against a target.

Yet investors are constantly gleaning information from lawyers, speculators, analysts and others who may have insight into SEC investigations. Gavin decided that he should be able to learn what was going on through FOIA requests for correspondence and related communications.

The SEC routinely issued blanket denials of FOIA requests under so-called "Glomar exemptions."

In concluding Gavin's case, U.S. District Judge Paul Magnuson ordered the SEC to either disclose the information Gavin sought or provide detailed explanations of why the information was exempt from disclosure because the SEC was engaged in ongoing investigations. The result: no more blanket denials.

Neal St. Anthony • 612-673-7144 • nstanthony@startribune.com