Navigating SEC Investigations in Texas with an Experienced Defense Attorney

When companies or individuals in Texas face scrutiny from the U.S. Securities and Exchange Commission (SEC), having an experienced SEC defense lawyer can make all the difference. Texas SEC attorneys understand both federal securities laws and how to navigate the SEC’s specific procedures and priorities.

Overview of SEC Enforcement in Texas

Texas has a high concentration of public companies in industries like energy, technology, and healthcare. The SEC’s Fort Worth regional office oversees enforcement activities in the state. Some common SEC investigations and charges in Texas involve:

• Accounting fraud
• Insider trading
• Investment scams
• Foreign Corrupt Practices Act (FCPA) violations
• False statements in filings and reports

When investigating potential misconduct, the SEC can issue subpoenas, take sworn testimony, and refer matters for criminal prosecution. Most inquiries begin informally but can lead to formal orders of investigation and eventual civil charges.

Frequent SEC Violations in Texas

Some of the most common SEC violations faced by Texas corporations and individuals include:

Accounting Fraud

Public companies must file accurate financial reports. Intentionally manipulating numbers is illegal. Tactics include premature revenue recognition and misclassifying expenses. Major recent Texas cases include Enron and MiMedx.

Insider Trading

Trading securities based on non-public information is insider trading. Common cases involve executives trading ahead of announcements. The SEC actively pursues insider trading in Texas, including recent charges against BP and Andeavor employees.

Investment and Affinity Fraud

Making false statements to investors when selling securities violates SEC rules. Affinity fraud targets specific groups. A recent Texas case involved a Houston pastor accused of defrauding elderly investors.

FCPA Violations

The FCPA prohibits bribing foreign officials for business. Major energy and technology companies with Texas ties have faced FCPA cases like Halliburton and Panasonic.

Working with Texas SEC Defense Attorneys

Facing SEC scrutiny can be extremely stressful. But experienced SEC defense counsel can help by:

• Responding to subpoenas and document requests
• Preparing clients for sworn investigative testimony
• Drafting persuasive Wells submissions arguing against charges
• Negotiating favorable settlements where possible
• Litigating actions in federal court or administrative proceedings

In short, knowledgeable Texas SEC defense lawyers serve as trusted advocates and guides through the process.

Key Skills and Experience for SEC Defense Attorneys

Successfully representing clients in SEC matters requires specific skills and experience including:

• In-depth knowledge of securities laws and regulations
• Experience with government investigations and enforcement defense
• Understanding complex financial transactions and accounting
• Excellence taking investigative testimony and cross-examining witnesses
• Creativity and strategic thinking to build strong defenses
• Superb communication skills

Beyond just legal skills, top SEC defense lawyers also have strong negotiation abilities, interpersonal skills, and perseverance. They know how to advocate vigorously while maintaining credibility and trust with regulators.