SEC Subpoena - Transcript

Receiving an SEC subpoena is a serious matter that requires immediate attention and action. Malecki Law, a trusted name in securities law, understands the high stakes involved when the Securities and Exchange Commission initiates contact. The SEC is one of the most powerful regulatory bodies in the United States, and their involvement signals that you may be a witness or a target in an investigation. Failing to respond appropriately can have significant consequences, which is why hiring experienced legal counsel should be your first step.

When you receive an SEC subpoena, your instinct may be to cooperate fully and provide all requested information without hesitation. Many people believe that by being forthcoming, they can avoid further scrutiny. However, this approach can backfire. Hiring a lawyer sends a clear message to the SEC: you are serious about protecting your rights and ensuring that the process is handled properly. Contrary to popular belief, hiring legal counsel does not make you look guilty; it makes you look smart and well-prepared. A seasoned securities attorney can:

• Push back on overly broad or burdensome requests.
• Clarify whether you are a witness or a target in the investigation.
• Ensure that your rights are protected throughout the process.

One of the biggest mistakes individuals make after receiving an SEC subpoena is speaking to regulators without first consulting an attorney. It’s a common misconception that full disclosure will end the investigation quickly. In reality, providing unfiltered or poorly thought-out information can complicate your situation and potentially incriminate you further.

Another misconception is that hiring a lawyer will make you appear guilty. This could not be further from the truth. By retaining counsel, you demonstrate that you understand the gravity of the situation and are taking steps to ensure that the process is handled correctly. Regulators are less likely to overstep their bounds when they know you are represented by experienced legal professionals.

An attorney with experience in SEC investigations can provide invaluable guidance and support. For example, at Malecki Law, our role typically includes:

1. Determining the Scope of the Subpoena: The SEC often issues broad subpoenas that request extensive documentation and information. Your lawyer can negotiate with the SEC to narrow the scope, saving you time and resources.
2. Protecting Your Rights: Your attorney will ensure that your rights are upheld during the investigation, including your right against self-incrimination.
3. Obtaining the Formal Order of Investigation: This document outlines the focus of the SEC’s inquiry. Knowing the specifics allows your lawyer to prepare a tailored response strategy.
4. Preparing You for Testimony: If you are required to testify, your attorney will prepare you for what to expect and ensure that you understand the rules of testimony.
5. Minimizing the Impact: By addressing the SEC’s concerns early, your lawyer can help resolve the matter before it escalates into a costly and prolonged legal battle.

Responding to an SEC subpoena without legal counsel is akin to navigating a minefield blindfolded. The SEC’s investigators are highly skilled and operate within a complex framework of securities laws and regulations. Even a seemingly minor misstep can have severe consequences, including civil penalties, reputational damage, and in some cases, criminal charges.

By retaining an experienced securities attorney, you gain a crucial ally who can navigate these complexities on your behalf. There are steps that need to be taken before you sit in that chair. You need to be prepared, understand the rules of testimony, and have the tools in your toolbox to get through it unscathed.

Addressing the SEC’s concerns early can often prevent the matter from escalating. Acting quickly and decisively can help you avoid the financial and emotional toll of a prolonged investigation.

If you have received an SEC subpoena, do not wait to seek legal advice. The experienced attorneys at Malecki Law are well-versed in handling SEC investigations and can guide you through this challenging process. Call us at (212) 943-1233 or visit our website to schedule a consultation. Protect your rights and ensure the best possible outcome with Malecki Law by your side.

Transcript:

It is absolutely crucial if you receive an SCC subpoena that you hire Council immediately. This is one of those Pennywise pound foolish things that don’t be pound foolish. The SEC is a very powerful institution and if they are calling you it’s because you may have been a witness or you may be the target of an investigation.

And so it is really important to have a lawyer that can push back on the SEC to let them know that you are represented that somebody’s watching what’s going on and that you’re being taken care of.

A lot of people they hire me after they get an SEC subpoena and they say oh yeah you know the the feds uh the part of justice is at my house I have a card I told him everything. Excuse me you talked to a criminal regulator before you talk to a lawyer and they think well if I tell them everything they’ll go away no just the opposite.

And a lot of people think, well they’ll think I’m guilty if I hire a lawyer, again just the opposite. They’ll think you’re smart, they’ll know they can’t take advantage of you and they will play by the rules.

So it is critically important and you must know that a lawyer can speak to the SEC much differently than a witness. They can’t influence the testimony of a witness, so they can’t tell you for example if you’re a Target or a witness.

They can’t tell you what the investigation is about, there’s a formal order of investigation that you need to get.

There are steps that need to be taken before you sit in that chair such as being prepared. There are rules of testimony and so you need to have the tools in your toolbox to get through it unscathed.

Because if it goes further than just the subpoena it is an extremely expensive process and you can nip it in the bud.