# SEC Deferred Prosecution Agreements Explained The U.S. Securities and Exchange Commission (SEC) does not handle criminal investigations, that’s the U.S. Department of Justice (DOJ). Instead, the SEC handles civil enforcement. So, in order…
The Securities and Exchange Commission (“SEC”) investigates cryptocurrency activity involving potential securities-law violations (among other forms of misconduct). This is among others because the SEC is not a criminal prosecutorial agency; and while it…
The SEC cannot file criminal charges or impose imprisonment. It has no power to take either of these actions. The Department of Justice (DOJ) controls federal criminal charging decisions that arise from SEC investigations.…
In 2001, the SEC issued Seaboard, a report detailing the framework that it uses to evaluate cooperation and cooperation credit. The Seaboard framework addresses four primary areas: “Self-policing” “Self-reporting” “Cooperation” “Remediation” When is cooperation…
If a company’s responses to a comment letter reveal concerns about securities law violations, the SEC’s Corporation Finance staff may refer the matter to the SEC’s Division of Enforcement. Enforcement staff can then begin…
The SEC’s Rule 10D-1 establishes a separate recovery regime under Section 954 of the Dodd-Frank Act without requiring an officer’s personal fault or misconduct. Instead, a qualifying accounting restatement is sufficient to trigger the…
If the SEC conducts a federal civil lawsuit, the enforcement proceeding begins when the SEC files a civil complaint in federal district court. If the SEC conducts an administrative enforcement proceeding, the proceeding begins…
For an association bar to end a securities career, the scope must be such that it excludes the individual from virtually all forms of securities industry participation, and the regulated career must be narrowly…
An SEC crypto subpoena will compel documents, electronic data, sworn testimony, or all three. Receiving a subpoena for an SEC crypto investigation does not establish that you violated federal securities laws in any respect.…
Companies that reasonably anticipate an SEC enforcement investigation must preserve relevant electronic and physical evidence. They must also implement governance measures and controls to protect the company’s interests and ensure compliance. These measures should…