Learn the Basics of What You Can Expect if You Are the Subject of an SEC Investigation

Learn the Basics of What You Can Expect if You Are the Subject of an SEC Investigation

The U.S. Securities and Exchange Commission (SEC) files hundreds of administrative and civil enforcement proceedings against people and businesses every year for breaking the country’s securities laws. The Division of Enforcement of the SEC is in charge of carrying out investigations. In order to seek criminal charges where necessary, the Division also collaborates closely with the U.S. Department of Justice (DOJ) and other law enforcement organizations in the U.S. and abroad.

Every SEC investigation is carried out in private. Through casual enquiries, witness interviews, scrutinizing bank and brokerage records, reviewing trading data, and other techniques, the facts are fully explored to the extent practicable. The Division may subpoena witnesses to appear in court and produce books, records, and other important documents with the issuing of a formal Order of Investigation.

After conducting the investigation, Division staff submit their findings to the SEC Commissioner for review. The Commissioner then decides whether to give the Division staff permission to file a case in federal court, bring an administrative action, or refer the matter to the DOJ for criminal prosecution. In reality, a lot of inquiries against securities fraud are settled out of court.

If you are the subject of an SEC investigation, the first thing to do is contact a federal fraud defense attorney. You can do that by calling Chambers Law Firm at 714-760-4088.

The SEC will look to collect a wide range of information during their investigation

The SEC looks into alleged violations of the securities laws using a variety of resources and techniques. The SEC typically issues administrative subpoenas or informal requests requesting pertinent documents and information from all parties involved. The SEC has rigorous guidelines for how such documents and information must be given electronically, and it employs a large workforce of experts to help the designated SEC staff members analyze the data collected.

Forensic accountants, economists, and securities law specialists are included in this. Additionally, the SEC frequently requests copies of chat room interactions, internal emails from business and personal accounts, and bank and trading account information.

The SEC has extensive authority to gather information formally and informally. Even over the phone, the SEC is permitted to conduct voluntary interviews. Additionally, the SEC has the authority to send voluntary Background Questionnaires to parties involved in a case, requesting personal data such as the witness’s date of birth and place of residence, names and account numbers for all securities and brokerage accounts, a list of all educational institutions attended and degrees obtained, as well as employment history.

Request a free legal consultation to find out what your options are

If you are facing an SEC investigation, or have reason to suspect you will soon do so, we invite you to contact a federal defense attorney for a free legal consultation. Contact Chambers Law Firm at 714-760-4088 now to get started.

Call Us Today