The SEC is the U.S. Securities and Exchange Commission. Its Division of Enforcement investigates potential federal securities-law violations. Unlike the DOJ, which handles criminal cases, the SEC pursues civil and administrative remedies through SEC…
SEC investigations are generally confidential. While the SEC can and does issue subpoenas and seek court orders, it typically does not make enforcement charges public or disclose the details of an ongoing investigation until…
The SEC can share investigative information with criminal authorities and regulators, meaning an SEC examination will frequently trigger parallel enforcement inquiries. A witness’s Fifth Amendment strategy should be resolved before the witness enters the…
An attorney can negotiate an SEC settlement on behalf of a client. In negotiations involving clients’ potential civil liability, counsel must first review the government’s evidence to identify weaknesses in the government’s case and…
An SEC matter can begin as an informal inquiry or a formal investigation. Either way, it should be taken seriously. With an informal inquiry, the SEC staff will send you (or your counsel) a…
When FINRA disciplinary proceedings present parallel criminal exposure, decisions about whether and how to contest the allegations are complex and consequential. We work closely with our clients to coordinate defense efforts across all pertinent…
SEC vs. DOJ. The SEC is an administrative agency; the DOJ is the executive branch and is responsible for criminal prosecutions. SEC investigations are civil in nature, and SEC enforcement proceedings are civil or…
Parallel Investigations The SEC and DOJ can (and often do) investigate the same conduct at the same time. If the SEC brings charges, it will be a civil matter; if the DOJ brings charges,…
The SEC uses the whistleblower program to secure insider information that reveals, confirms, or expands on potential evidence of securities-law violations. This process can be summarized as follows: Whistleblowers submit tips that are processed…
The SEC may prove insider trading through direct or circumstantial evidence. A civil insider-trading claim relies on the preponderance-of-evidence standard. With this standard, the SEC must show that liability is more likely than not.…