SEC Subpoenas

Knowledgeable Securities Lawyers Strategically Advising Financial Professionals Through Regulatory Investigations

Receiving a subpoena from the Securities and Exchange Commission (SEC) can be a turning point in your professional life. Whether you are a witness, a third party, or the focus of an investigation, the stakes are high, and every step you take matters. Malecki Law, a leading securities law firm, is here to help you navigate this challenging process. With decades of experience in handling SEC investigations, our attorneys bring the expertise and dedication needed to protect your rights and guide you toward the best possible outcome.

What Is a Subpoena?

A subpoena is a formal legal document issued by a court or regulatory body, such as the SEC, requiring an individual or entity to provide documents, testimony, or other evidence. There are two main types of subpoenas:

1. Subpoena Duces Tecum: Requires the production of documents or records.
2. Subpoena Ad Testificandum: Requires the recipient to appear and testify under oath.

Subpoenas are legally binding, and failure to comply can result in significant penalties, including fines or contempt charges.

When Will the SEC Issue a Subpoena?

The SEC typically issues a subpoena during an investigation into potential violations of federal securities laws. Reasons for issuing a subpoena include:

• Suspected fraudulent activities, such as insider trading or Ponzi schemes.
• Misrepresentation or omission of material facts in financial disclosures.
• Violations of rules governing broker-dealers or investment advisors.

An SEC subpoena does not necessarily mean you are the target of an investigation; you may be a witness or a third party with relevant information. However, it is essential to treat any subpoena seriously and seek legal counsel immediately.

What Is Contained in a Subpoena?

An SEC subpoena typically includes the following:

• Scope of the Request: Details about the documents, communications, or testimony required.
• Deadline for Compliance: A specific timeline within which you must respond.
• Instructions for Submission: Guidance on how to provide the requested documents and information.

The language in a subpoena can be broad and may require clarification. It is crucial to review the document with an experienced securities attorney to ensure compliance without disclosing unnecessary or harmful information.

What Is a Formal Order of Investigation?

A Formal Order of Investigation is a document issued by the SEC authorizing its staff to conduct an investigation into potential securities law violations. This order grants the SEC the power to issue subpoenas, compel testimony, and require the production of documents.

The formal order is not typically included with the subpoena, but you have the right to request a copy to understand the scope and basis of the investigation. Your attorney can help obtain this document and advise you on its implications.

What Should I Do if I Receive an SEC Subpoena?

Receiving an SEC subpoena can be daunting, but taking the right steps can make a significant difference in your case. Here’s what you should do:

1. Do Not Ignore the Subpoena: Failing to respond can result in legal consequences, including enforcement actions.
2. Consult an Attorney Immediately: An experienced securities attorney can help you understand the subpoena’s scope, negotiate the terms of compliance, and protect your interests.
3. Preserve Relevant Documents: Ensure that all requested documents are retained and organized to comply with the subpoena.
4. Avoid Communication with the SEC Without Counsel: Anything you say or provide to the SEC can be used against you. Allow your attorney to manage all communications.
5. Prepare Thoroughly: If required to testify, your attorney will help you prepare for the questioning and ensure you understand your rights.

Protect Your Rights With Malecki Law

Malecki Law has extensive experience representing clients in SEC investigations and responding to subpoenas. Our attorneys understand the complexities of these proceedings and will work diligently to safeguard your interests. If you have received an SEC subpoena, contact Malecki Law at (212) 943-1233 for a consultation. Let us provide the guidance and advocacy you need during this critical time.

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