1. Preservation Upon receiving the SEC request, the recipient should immediately suspend any routine document deletion practices to preserve all evidence that may be subject to the SEC’s request. This includes electronically stored information,…
Often (and not always), civil SEC proceedings and criminal DOJ proceedings will investigate the same trading. While some regulators believe awareness of Rule 10b5-1 eliminates an insider’s need to address the other elements of…
While the notion of decentralization is central to the DeFi movement, it does not provide a statutory exemption from federal securities laws. The SEC’s jurisdiction covers securities, regardless of whether the underlying issuer or…
The answer depends on both the nature of the digital asset and the type of custody services the company is offering. For example, token classification affects whether federal securities registration requirements are triggered. These…
Within the first few years of the Dodd-Frank Act’s enactment (which strengthened the SEC’s investigatory powers), a thirty-day window was routinely afforded to witnesses for the submission of errata sheets. However, this was a…
The SEC has enforcement authority limited to civil proceedings, and the DOJ and its U.S. Attorneys have authority to pursue criminal charges. Often, the SEC and U.S. Attorneys will work together in parallel civil…
Yes. When one course of conduct triggers multiple inquiries, your defense needs to address the risks and requirements presented by each agency. Each agency’s request for a response constitutes its own set of obligations…
Whether SEC cooperation helps is case-specific, as “cooperation credit” remains discretionary. While cooperation can substantially reduce (and sometimes eliminate) criminal or civil charges, penalties, and other sanctions, there is no guarantee. However, in appropriately…
Under Section 20(a) of the Securities Exchange Act of 1934, control-person liability applies when (i) an underlying violation of the Exchange Act (or rule promulgated thereunder) occurs and (ii) a person is “subject to”…
Consent judgments and SEC administrative settlement orders are not the same. Consent judgments are entered by federal courts. SEC administrative settlement orders are final agency actions. These two types of enforcement actions have different…