Being served with an SEC subpoena can be a harrowing experience, and this is true whether you are a market professional, the CEO of a regulated entity, or an investor. That investigation can have a serious effect on your business, or your career and has the risk of consuming a significant amount of time, and money, even if you have not engaged in any wrongful conduct. How you respond to the initial inquiry, and how you manage the events as the investigation continues often determines the outcome of that investigation.
SEC investigations can begin from a variety of sources, including anonymous tips, trading surveillance by the SEC, or the exchanges, customer complaints, or from information obtained by other government entities. Witnesses and even targets, often learn of the investigation by a simple telephone call from an investigator or staff attorney. That telephone call will be followed by a letter, which requests that you voluntarily provide information to the SEC Staff.
The investigation can lead to civil and criminal charges. For the full analysis of the issues, read Tips for Responding to an SEC Subpoena. If you receive a subpoena, call Mark Astarita, Esq., a national securities lawyer before you respond.
You may also be interested in:
- Regulation Best Interest (Regulation BI) Compliance Due June 30, 2020
- Introduction to Regulation Best Interest
- Removing Customer Complaints and Firm Disputes from BrokerCheck
- Lessons in Zoom meeting safety: Useful tips for advisors and clients during the coronavirus pandemic
- DOJ Closes Its Senator Insider Trading Investigation, Except for Burr
