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SEC And CFTC Enforcement Lawyer

March 21, 2024 Uncategorized

Responding to SEC Subpoenas

Responding To SEC Subpoenas

Everyone hopes they’ll never be involved in an SEC investigation, but unfortunately many financial professionals do get trapped. Receiving an SEC subpoena is difficult, and can be a worrisome event. For a financial professional to receive an SEC Subpoena is intimidating. You’re wondering why the SEC is contacting you, and wondering whether responding to SEC subpoenas is a good idea. Receiving a subpoena is definitely not something you want. When this happens, speak to our SEC attorneys on the manner in which you should respond to sec subpoenas. Generally, individuals are contacted by the SEC for two reasons: 1) you’re the subject of the investigation, and 2) the SEC believes you might have valuable information pertaining to an ongoing investigation.

Regardless of the reason, you will be subpoenaed to provide documents or testify, or both, depending on what the SEC hopes to get from you. As a result, it’s important to see what the SEC’s intention is, because responding to SEC subpoenas is an art. Subpoenas for documents are straightforward – the SEC will ask for specific types of documents which have to be provided to the SEC  by a specific date. In order to comply with the subpoena, the recipient of the subpoena has to respond to the SEC subpoena with all of the documents by the due date.

If the SEC calls you to provide testimony, then this is known as an on the record interview. Subpoenas for testimony are straightforward and so is responding to SEC subpoenas for testimony. The subpoena will state where, and when, the person has to appear to testify. It will contain no clues on what the testimony requested will be about. In advance of the OTR, you will need to prove documents related to transactions, businesses, etc, that will be probed regarding in the OTR. You could also be questioned on documents and testimony provided by others.

Before responding to SEC subpoenas, you should contact us. We understand these matters, and it’s important we get a copy of the formal order of investigation, which will tell us some more detail about the investigation you have been called to testify/produce documents about. It’s important you understand and be prepared to give responses to subpoenas, both in terms of testimony and documents. You’re now involved in a litigation matter, and every word matters. Once you respond to the subpoena and appear at the OTR, the SEC can choose to charge you, or determine it won’t pursue action against you. The SEC can pursue you civilly or criminally. More often than not, individuals are pursued civilly, either in court, or via an administrative proceeding. Prior to being formally charged, individuals are given a chance to settle the matter and agree sanctions. Generally, common sanctions include revocation/suspension of licenses, disgorgement, and monetary fines. Criminal charges, if pursued, can result in imprisonment among other penalties.

Due to the sheer magnitude of the penalties you’re facing, you need to focus on protecting yourself – you need an attorney on your side who can respond to the SEC subpoena and keep you out of trouble. You need to understand whose the target of the SEC investigation. Is it you, someone you work with, or someone you did business with? These questions don’t have readily available answers. SEC subpoenas are very specific in what they request, and are very vague. As a result, from the first second you get an SEC subpoena, have one of our attorneys handle it. You probably don’t have experience in dealing with the SEC, and are unaware of protections available to you.

Facing CFTC Allegations? Why You Need an Experienced CFTC Enforcement Attorney

If the Commodity Futures Trading Commission (CFTC) believes you have committed certain violations, be prepared for harsh penalties and sanctions. In many cases, the CFTC will use such penalties as fines, bans, and even varying degrees of criminal penalties that could land you in prison. Since the agency conducts its own investigations through its Division of Enforcement, it is able to make these investigations lengthy and very detailed, which can put enormous pressure on individuals who may be under the microscope of investigators. Rather than place your legal fate in the hands of an attorney who has never before handled a CFTC case, contact a knowledgeable CFTC enforcement attorney.

Planning Your Defense

When the CFTC comes knocking at your door with various allegations and threats of fines and jail time, do not let yourself panic and make poor decisions. Instead, immediately contact a skilled CFTC enforcement attorney who has an in-depth knowledge of CFTC cases and can work with you to plan a strong defense that gives you a favorable outcome. Depending on the circumstances of your case, you and your attorney may choose to mount a strong defense to prove your innocence. However, in other situations where the charges against you may be more substantial, it may be to your benefit to instead work with government investigators so that you gain the best resolution to your case. Whichever option is selected, your CFTC enforcement attorney can always make sure your legal rights are protected from start to finish.

Increased and Expanded Authority

With the passage of the Frank-Dodd Act and various amendments that have been added to the legislation over the years, the CFTC has found itself to be an agency that has been able to increase and expand its authority over the futures and options market. As a result of this greater authority given it by the federal government, the CFTC is often very aggressive when pursuing investigations of all types. Therefore, once CFTC investigators charge you with various types of illegal activity, do not sit back and hope everything resolves itself. Since these investigations can move very quickly if you fail to put up much legal resistance, hire a CFTC enforcement attorney who can slow down the process while examining evidence and building a legal strategy for your case.

Protection from Fraudulent Practices

While the mission of the CFTC is to protect those involved in futures and options from falling victim to fraudulent and manipulative practices, this sometimes means those who may be unaware of certain rules and regulations get caught up in investigations where they had no intention of wrongdoing. For example, since such commodities as gold, copper, and gas are now included under the umbrella of markets that are scrutinized by the CFTC, it is possible you may be conducting business in a manner that you do not believe to be illegal. However, if the CFTC thinks otherwise, an investigation and charges are sure to ensue. Rather than try to deal with government investigators on your own or with an inexperienced attorney, always rely on the expertise of CFTC enforcement attorneys to protect your constitutional rights from being violated.

Going to Trial

If the CFTC does in fact bring charges against you, do not think the agency will simply allow you to settle your case with an informal hearing or other quick and easy measures. Instead, you will be facing a trial in a courtroom. Due to the agency being known for its aggressiveness in pursuing convictions, its attorneys will pull out all the stops in an effort to find you guilty and send a message along the way. To walk out of court victorious, you will need CFTC enforcement attorneys who have handled these cases in the past and have a track record of success with their clients. Otherwise, fines and a prison sentence could be in your future.

Should you fail to take CFTC charges against you seriously, you run the risk of severe legal penalties. To keep this from happening, turn to CFTC enforcement attorneys you can trust to handle your case in a professional manner.

The United States Commodity Future Trading Commission (CFTC) Division of Enforcement

The United States Commodity Future Trading Commission (CFTC) Division of Enforcement is responsible for the investigation and prosecution of any violation that it sees violating the Commodity Exchange Act and CFTC regulations.

It’s important that when a commodities investigation, or enforcement action, gets initiated, you have a strong strategy that will help you achieve a favorable resolution. In some situations, working with the government makes sense. In others, you should take a more defensive position.

What is the Commodities Future Trading Commission (CFTC)

With a commodity futures contract, investors and buy or sell commodities at an agreed-upon number of units on a future date. What makes this ideal is the fact that the price is locked. Investors can sell the contract for a profit before acquiring the commodity. So, if the price of the commodity increases after the commodity is bought, investors can make a decent profit.

Of course, commodity prices are not known for their stability. The values of commodities can go through upward and downward swings. The ability for a big yield is what attracts people to commodity trading. Unfortunately, many people lose money due to receiving bad information. This environment creates the temptation for people to engage in deceptive practices. In response to this, the U.S. Congress created the Commodities Futures Trading Commission to protect consumers and investors from deceitful practices in the commodities market.

What Does the CFTC Do?

The CFTC promotes the openness, soundness, and transparency where commodity derivatives are traded. The Commission strives to protect participants from the risk posed by abuses and inequities that would increase the potential of risk. To do this, the commission monitors the parties involved in the trade.

The Dodd-Frank Amendments Gave the CFTC More Authority

It’s widely known that the Dodd-Frank bill gave the CFTC more authority. As a result of this, CFTC has increased its level of aggressiveness in pursuing investigations and trading activity in the commodities market. All commodities, from precious metals to bitcoins, are being investigated. Before Dodd-Frank, the CFTC did not have any jurisdiction over leveraged precious metal in the United States.

Is the CFTC Necessary?

Unfortunately, it is. Futures trading depends on transparency. Is the CFTC effective? That’s debatable. But at any rate, many people agree that having an independent commission to provide oversight is good for consumers and traders.

If you are currently under investigation, you should speak with an attorney at Farrar & Lewis LLP. We know what’s at stake and can help you deal with any enforcement actions. It’s is our goal to have you achieve a favorable outcome. We will review your case and inform you of your legal options. The attorneys at Farrar & Lewis LLP will help you make the best legal decisions.

CFTC Investigations Enforcement Actions Lawyers

The trading of commodities is a great way for an investor or professional trading company to earn a good return on investment while also hedging against the risks of other types of Investments. Similar to one investing in other types of securities, those that are involved in the investment of commodities are subject to a wide range of rules and regulations. The organization that is responsible for the enforcement and regulation of these rules is the United States Commodity Future Trading Commission, which is commonly referred to as the CFTC.

Crimes Covered by CFTC

Over the past few years, the rules and regulations that the CFTC have created and are responsible for regulating have continued to increase. Today, the CFTC is responsible for a wide range of rules and those that are in violation of these rules could face severe punishment.

Some of the most common laws that the CFTC enforces are in regards to insider trading. Similar to when you are trading stocks for individual companies, there are many different rules in place that prevent you from trying to profit off of inside information. If you happen to have information that is beneficial to a trade and is not readily available in the common marketplace, you could be in violation of insider trading. The CFTC is responsible for investigating these situations.

The CFTC is also responsible for regulating and managing fraud in the commodities industry. If an organization or investment fund is thought to be defrauding investors, the CFT will complete a full investigation of the situation.


If you are under investigation from the CFTC, there are a number of different ways that you could be penalized. For those that are under investigation and deemed to be in violation of a law, the most common penalty is a financial penalty. Those that are considered to have made a profit off of insider information will likely be penalized at least the amount of the profit plus a variety of other punitive penalties. It is also possible for someone to lose their right to trade commodities and securities in the future.

If you are being investigated for fraud by the CFTC you could be in far more trouble and be facing far more severe penalties. Depending on the scope of the fraud and your involvement, you could be facing a long prison sentence if the CFTC decides to bring your case to the criminal court system.

Legal Support

Due to the severity of the cases that the CFTC can handle, it is always a good idea to hire an attorney if you are under investigation by the CFTC. Ideally, you should find an attorney that specializes in criminal defense when it comes to financial crimes. These attorneys will have experience in negotiating with the CFTC and could help you to negotiate a plea bargain or receive a reduced sentence if you are found guilty. The attorney will be able to handle all aspects of the case including defense preparation and negotiations.

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