In enforcement matters involving the SEC, outside counsel can investigate suspected securities violations, manage the government’s request for information, defend the company and its officers in administrative proceedings and federal court, and guide companies…
The SEC’s 2016 complaint against RPM and its general counsel (No. 1:16-cv-01803, District of Columbia) shows that GCs can become targets under circumstances that are neither “extraordinary” nor unprecedented, but they are far from…
Is Front-Running Always an SEC Violation? Not per se. There is no single federal statute that defines front-running, though as a form of securities fraud and insider trading, front-running can be unlawful in various…
A former SEC title does not necessarily mean a lawyer has the ability to represent you in an SEC enforcement matter. On its own, this title reveals very little about a lawyer’s experience or…
The SEC handles civil FCPA enforcement, and the DOJ handles criminal FCPA enforcement. While this distinction might suggest that any case involving civil violations of the FCPA will only involve the SEC, and any…
The Supreme Court acknowledged in United States v. Kordel that “parallel proceedings for civil and criminal penalties” are lawful. According to Kordel, individuals are entitled to assert the Fifth Amendment during SEC civil testimony…
Individuals who receive an SEC subpoena can, in some (but not all) circumstances, invoke their Fifth Amendment privilege against self-incrimination to avoid testifying. Corporations, however, have no Fifth Amendment privilege against self-incrimination. If the…
The phrase “insider trading” does not appear in the Exchange Act itself. Instead, federal insider trading law is primarily a matter of interpretation of Section 10(b) of the Exchange Act, Rule 10b-5, and judicial…
A FINRA Wells notice confirms FINRA staff’s preliminary determination to recommend formal disciplinary action, which may involve charges of violations of the Securities Exchange Act of 1934, FINRA rules, or other federal securities laws.…
FINRA is a private, nonprofit, member-funded corporation. It is a self-regulatory organization (SRO) created to oversee broker-dealers and their affiliated persons. Unlike the SEC, FINRA is not a government agency, it is a private…