Kansas SEC Defense Lawyers

Kansas SEC Defense Lawyers

Being investigated by the SEC can be scary. You may feel overwhelmed and not know where to turn. But having an experienced SEC defense lawyer on your side can make all the difference.

SEC investigations in Kansas and elsewhere focus on possible violations of federal securities laws. Common issues include insider trading, accounting fraud, offering fraud, and failure to register securities or broker-dealers. If the SEC believes you violated securities laws, they may start an informal investigation or begin formal proceedings.

The stakes are high. You could face huge fines, be barred from working in the industry, or even face criminal charges. That’s why it’s critical to have an SEC defense attorney representing you from the very start of an investigation.

Benefits of an SEC Defense Lawyer

An SEC defense lawyer can provide many benefits, including:

• Analyzing the Strength of the SEC’s Case – Your lawyer will evaluate the evidence and help determine if the SEC’s allegations are supported.
• Navigating the Investigation – They’ll guide you through the often complex investigation process.
• Avoiding Mistakes – They’ll advise you on how to respond to subpoenas and requests to avoid missteps.
• Negotiating Settlements – If violations occurred, they can negotiate settlements on your behalf.
• Litigation – If the SEC initiates legal proceedings, your lawyer can represent you in court.

Having an experienced SEC defense lawyer levels the playing field when you’re up against the formidable resources of the government.

Choosing the Right SEC Defense Attorney

Not all securities lawyers are alike, so it’s important to choose the right one for your needs. Here are some tips:

• Find an attorney with specific experience handling SEC cases. SEC rules and procedures are complex.
• Choose a lawyer familiar with your industry and type of violation alleged.
• Make sure they have experience litigating before the SEC, should your case go to trial.
• Consider lawyers who previously worked for the SEC or other government agencies.
• Choose someone you feel comfortable with and can trust.

Don’t wait to consult an attorney – the earlier in the process, the better. Time is of the essence in SEC investigations, so retaining counsel quickly helps maximize your defense.

SEC Defense Strategies

Experienced SEC defense lawyers use various strategies to protect their clients’ interests. Common techniques include:

• Conducting an internal investigation to get the facts.
• Attempting to convince the SEC that violations didn’t occur.
• Arguing that the SEC lacks jurisdiction.
• Asserting that the client wasn’t involved in misconduct.
• Claiming the SEC’s allegations are based on a misunderstanding.
• Arguing that the activity didn’t meet the legal definition of a violation.
• Negotiating a favorable settlement if violations did occur.

In some cases, even if a violation happened, your lawyer may be able to get the charges dismissed on technical grounds or via extensive negotiations with the SEC.

The SEC Investigation Process

A typical SEC investigation includes the following stages:

1. Informal Inquiry – The SEC sends a voluntary request for information or documents. At this stage, you may not need an attorney.
2. Formal Investigation – The SEC issues subpoenas to obtain testimony and records. Now it’s essential to have counsel.
3. Wells Notice – The SEC indicates it intends to bring civil charges. Your lawyer can make a Wells submission arguing why charges shouldn’t be brought.
4. Settlement – Most cases end in a settlement where you agree to sanctions without admitting wrongdoing.
5. Litigation – If no settlement is reached, the SEC can file charges in federal court or bring the case before an Administrative Law Judge.

Having a knowledgeable SEC defense attorney helps you navigate each step and achieve the best possible outcome.

Common SEC Violations

While the SEC enforces a wide range of federal securities laws, some of the most common allegations include:

• Insider Trading – Trading stock based on material, nonpublic information.
• Accounting Fraud – Falsifying financial statements and records.
• Offering Fraud – Misleading investors when selling securities.
• Registration Violations – Failure to properly register securities or broker-dealers.
• Misrepresentations – Making false or misleading statements to investors.

Violating securities laws, even unintentionally, can result in harsh sanctions. A knowledgeable lawyer understands these laws and how to build an effective defense.

SEC Penalties

If the SEC establishes that violations occurred, possible consequences include:

• Fines – The SEC can impose civil monetary penalties up to certain maximum amounts per violation.
• Disgorgement – You may have to give up (disgorge) any profits from illegal activity.
• Injunctions – The SEC can obtain court orders enjoining you from future violations.
• Bars – You may be barred from serving as an officer or director of a public company.
• Associate Bars – The SEC can prohibit you from associating with brokers, dealers, investment advisers or other industry participants.
• Other Consequences – The SEC may also issue cease and desist orders, censure individuals, or restrict future activities.
• The penalties imposed often depend on the severity of the misconduct, whether it was intentional or negligent, and other factors. But make no mistake – the SEC takes securities law violations seriously.
  

  Responding to an SEC Investigation

  If you become the subject of an SEC investigation, it’s essential to engage experienced counsel right away. In general, your SEC defense lawyer will recommend that you:

  • Not speak to SEC staff without your attorney present.
  • Assert your Fifth Amendment right against self-incrimination if compelled to testify.
  • Comply with subpoenas but avoid providing unnecessary information.
  • Do not destroy any relevant documents.

  In some cases, it may make sense to employ proactive defense strategies like submitting a “Wells submission” to argue against bringing charges. Your lawyer will advise you on the best approach.

  Settling an SEC Case

  Settlement allows you to resolve an SEC investigation without admitting or denying the allegations. It may be advisable where the evidence strongly supports the SEC’s charges or the alleged misconduct was unintentional. Benefits of settling may include:

  • Avoiding litigation costs and risks.
  • Potentially receiving a lighter sanction.
  • Quickly moving past the investigation.
  • Cooperating for credit to reduce penalties.

  Your SEC defense attorney can negotiate the settlement terms and work to achieve the most favorable outcome possible.

  Why Choose an SEC Defense Lawyer in Kansas?

  Retaining an SEC defense lawyer in Kansas offers many advantages, such as:

  • Local experience with Kansas SEC investigations and enforcement practices.
  • Relationships with SEC staff attorneys in the Kansas regional office.
  • Knowledge of federal courts and judges in Kansas where SEC cases may be brought.
  • Understanding of Kansas securities laws that often overlap with federal laws.
  • Convenience of working with an attorney located near you.

  Don’t wait to get experienced legal counsel on your side. Contact a trusted Kansas SEC defense lawyer for a consultation if you need assistance responding to an SEC investigation.