No. CPAs are licensed and overseen by the states in which they reside or work. Therefore, even when the SEC brings enforcement actions against accountants, it cannot impose discipline by revoking their state licenses.…
It is a very common misconception that the SEC is a law enforcement agency with a broad mandate to punish suspected violators by any means available. In reality, the SEC exists to enforce compliance…
Can an SEC Investigation Lead to Jail?No, an SEC investigation itself will not send you to jail. The SEC is a civil regulatory agency, and it does not have the authority to initiate criminal…
The U.S. Securities and Exchange Commission (SEC) is the nation’s primary securities regulator, so it does not have the authority to file criminal indictments, seek criminal convictions, or prosecute federal crimes. The responsibility to…
A Wells notice is an official communication from the SEC’s Division of Enforcement (or other division or program) notifying an individual or entity that a group of SEC staff have preliminarily determined to recommend…
An SEC violation is not automatically a felony or criminal offense. While the SEC can impose heavy civil penalties on corporate officers, the U.S. Department of Justice is the government agency responsible for criminally…
An SEC investigation, on its own, imposes no restrictions on domestic or international travel. No general federal rule requires subjects under investigation by the SEC to notify the SEC before traveling. If you are…
Speaking with a coworker during an SEC investigation is not automatically federal witness tampering. Section 1512(b) criminalizes communication with another “with intent to corruptly persuade[s] another person in any of the following ways: (1)…
An ordinary civil settlement, including one with the U.S. Department of Justice (DOJ), the Securities and Exchange Commission (SEC), or another federal agency, does not constitute an admission of guilt. While a settlement will…
A pending criminal investigation does not per se preclude an SEC settlement, although federal prosecutors will normally (and should) want to review an SEC settlement before the settlement becomes final. Even if the SEC…