SEC Subpoenas & Regulatory Investigations - 3 views
started by paulmelton on 03 Oct 24
started by paulmelton on 03 Oct 24
started by paulmelton on 03 Oct 24
started by paulmelton on 03 Oct 24
Practice Areas
Securities Industry Participants
SEC Subpoenas & Regulatory Investigations
SEC Subpoenas & Regulatory Investigations
From Jenice's interview for the Masters of the Courtroom series on ReelLawyers.com.
View Transcript
It can be unsettling to receive a subpoena or request for information from any governmental or regulatory authority, such as the SEC. Whether you are an industry participant or just a person in the United States, the SEC can and will subpoena you if you are potentially a witness in or a target of an SEC investigation or complaint. Malecki Law's team of experienced New York SEC regulatory attorneys are here help anyone who receives an SEC subpoena.
SEC subpoenas are a common part of the securities regulatory landscape. Anyone, anywhere, can be subpoenaed by the SEC if they worked at a company that is under investigation, traded in a stock that may seem to be manipulated, is believed to have traded on inside information and under many other scenarios. The SEC does not only have jurisdiction over the financial world's employees, but it can also subpoena anyone who is potentially the target of or may have helpful information related to an SEC investigation.
SEC subpoenas also require witnesses to give documents and possibly testimony. If you are served with a subpoena, it will contain the details regarding where and when you need to testify, but the subpoena will not have any detailed information regarding what you are being called to testify about. Prior to giving testimony, you could be asked to submit documents regarding certain businesses, individuals, transactions, etc., and these documents, along with those submitted by others, will potentially come up during the testimony.
Individuals are typically contacted by the SEC for two reasons: 1) You are the subject of its investigation; or 2) They believe you may have valuable information related to its investigation of an entity or someone else. In either case, you may be subpoenaed to provide documents (called a subpoena "duces tecum") or to testify (called a subpoena "ad testificandum"), or both.
The SEC starts with something called a "Formal Order of Investigation" and Malecki Law gets that document immediately upon engagement. It tells us a little more about what is going on. Then we call the SEC and try to get as much information as possible. Malecki Law will also work with the SEC to narrow the document requests if possible.
You should not talk to other potential witnesses as it can be seen as compromising your testimony, but it is not prohibited for your lawyer to speak with another witnesses lawyer, without compromising your testimony.
In advance of the OTR, you may be required to provide documents related to certain transactions, individuals, businesses, etc. that you will likely be questioned on in your OTR. You also may be questioned on documents or testimony provided by others. You will also be required to fill out a background questionnaire. All these steps really need the caring hand of an experienced New York SEC regulatory attorney, so you can push back where the SEC is too invasive, and properly respond where required.