Yes, the SEC has the authority to revoke a broker-dealer’s federal registration directly. Under Exchange Act Section 15(b)(4) (or “Section 15(b)(4)” / “15(b)(4)”), the SEC may suspend or revoke the federal registration of a…
While each investigation takes a unique shape, there are many commonalities. In addition to having individuals and companies involved in investigations, investigators seek to gain access to relevant records including trading records, financial statements,…
Can the Corporate Decision Itself Be the Basis for a Director’s Criminal Charges? Yes, if a corporate decision involves actions that violate the law, the underlying conduct associated with the decision can be the…
We separate our clients’ SEC civil and DOJ criminal exposure when warranted due to the significant differences between the two types of government enforcement proceedings, including the authority to pursue federal criminal charges (and…
While the SEC is a federal law enforcement agency with significant investigative authority, it is important to understand that the SEC does not prosecute criminal cases. Criminal prosecution is the sole purview of the…
If you’re being targeted in an investigation by the Securities and Exchange Commission, a good question to ask is: what does it mean to be “under investigation”? Depending on the scope and nature of…
A Wells notice is a letter from the SEC informing a target of a recommended enforcement action. It is not an instituted charge. The SEC’s Enforcement staff does not have the authority to institute…
SEC investigative subpoenas require prompt production of all responsive and nonprivileged materials that are within the company’s or individual’s “possession, custody or control.” The SEC states that it “respects the company’s and individual’s obligations…
Are there any similarities between wire fraud and securities fraud? There are many ways in which federal law enforcement agencies can use a wire-fraud charge as a backup to securities fraud. When federal prosecutors…
The SEC may contact your employer, or seek records from your employer, as the first step of its investigation into your alleged securities violations. In many cases, an employer will be contacted solely in…