What to Look for in an SEC Defense Lawyer
If you are under investigation by the U.S. Securities and Exchange Commission (SEC) or have received a subpoena or civil complaint, you need an experienced securities regulatory defense attorney to protect your interests.
Prosecutors, regulators, and law enforcement agencies are aggressive in their pursuit of securities law violations and have broad powers to investigate and prosecute violations. The SEC is one of the most powerful regulatory agencies in the United States.
It is important to be proactive in your defense. An experienced defense attorney knows how to provide you with sound recommendations and advice on how to proceed with your case.
Your defense lawyer will also thoroughly investigate your case and help you avoid mistakes that can make your case worse.
If you are subject to an SEC investigation or have received a subpoena or complaint, do not delay. It is critical that you secure the services of a defense attorney as early as possible. Do not speak with any agent, regulator, or prosecutor before speaking with an attorney. Your defense attorney will guide you at every stage of the process.
At Spodek Law Group, our defense team is experienced in defending clients against SEC investigations and litigation. We have the experience and expertise necessary to defend you against the SEC and clear your name.
Understanding Civil Investigative Demands (CIDs)
Federal Civil Investigative Demands (“CIDs”) are formal requests or demands for documents and information served on companies and individuals who may have information about suspected violations of law. CIDs are issued by the U.S. Department of Justice (DOJ).
The purpose of a CID is to determine whether or not a violation has occurred. CIDs are one of the most powerful tools the federal government can use to gather evidence as part of a civil investigation.
They are similar to subpoenas in that they require individuals or companies to produce documents or provide information. However, CIDs are broader than subpoenas because they can require the production of documents or information that are not necessarily relevant to a pending lawsuit.
Therefore, CIDs allow the government to begin collecting information about potential violations even before an investigation begins.
CIDs can be issued in connection with any federal civil law, but are most often used in connection with the False Claims Act (FCA), which prohibits the submission of false or fraudulent claims to the federal government.
It is important to respond to a CID in a timely manner because failure to do so can result in the imposition of civil penalties.
Some of the most common types of information requested in a CID include emails, financial records, and other communications.
Understanding How the SEC Investigates and Penalizes
The SEC is an independent federal agency that regulates the securities industry in the United States. Its primary mission is to protect investors and maintain fair, orderly, and efficient markets.
The SEC enforces the federal securities laws, which are designed to protect investors by requiring companies to disclose certain information about their finances and business operations.
The SEC can take enforcement action against individuals and companies that violate federal securities laws. The SEC can also investigate companies and individuals that may be violating these laws. In addition to civil enforcement actions, the SEC can refer cases to the DOJ for criminal prosecution.
The SEC has a variety of enforcement tools at its disposal, including the ability to:
- file civil lawsuits in federal court;
- seek injunctions to stop illegal conduct;
- seek civil penalties;
- bar individuals from serving as officers or directors of public companies; and
- enter into settlements.
Individuals and companies that are subject to an SEC investigation or enforcement action may also be subject to criminal prosecution by the DOJ.
If you are contacted by the SEC, it is important to seek legal counsel immediately. An experienced attorney can help you navigate the complex SEC process and protect your rights.
Hiring a Defense Attorney – What to Look For
If you are sued by the SEC or are under investigation by the SEC for suspected securities violations, it is important to hire an experienced SEC defense attorney.
Federal law is extremely complex, and the SEC has virtually unlimited resources to investigate and prosecute individuals and entities suspected of violating the law. Hiring an experienced defense attorney to represent you is your best chance of achieving a favorable outcome in your case.
Spodek Law Group can help you fight back against the SEC’s allegations and clear your name.
Put our highly experienced team on your side
Our legal team includes former federal prosecutors, former government officials, and attorneys with decades of experience in SEC defense and federal investigations. We understand how the SEC operates and know how to build a strong defense on your behalf.
