What to Do When the SEC Knocks On Your Door

When the Securities and Exchange Commission, one of the most active enforcing federal agencies, comes knocking at your door – what do you do next? The SEC takes its job of investor protection seriously. You should be prepared to take them seriously as well if they contact you or your business.

The SEC may contact you by either giving you a call or serving you with a subpoena. If you receive a call from the SEC requesting information, your contributions are likely voluntary. If you are served with a subpoena, you are required by law to provide any information which the SEC requests. That is because a subpoena means that the SEC has formally commenced an investigation into a person and/or a business who may have violated the securities laws, and that person and/or business could be you. 

How do you handle the call or the subpoena? If the SEC informally calls you and requests information on either your company or one you may be close to, the decision to voluntarily share information rests with you.  If you are served with a subpoena you must comply. In either instance, you should immediately reach out to counsel to discuss how you can and should respond.  

It is critical to try to figure out whether you are the subject of, the target of, or simply related to the SEC’s investigation. Counsel can assist in trying to help you make that determination.  

Counsel can speak to whoever issued the subpoena and get a fuller scope of the actual issue at hand.

Counsel may also assist you in placing a litigation hold on all documents and information that may be relevant to the SEC’s inquiry, and can help you conduct an internal investigation within your company to determine if you and/or your company have any legal exposure. That investigation, in turn, may help you determine whether you should cooperate with the SEC’s investigation or gear up for a fight.

SEC subpoenas can create negative press for your company. At Canales PLLC, we understand how essential your reputation is, which is why we handle all cases with the utmost care and discretion. We have experience with SEC matters and can assist if you are contacted by the agency. For more information, contact Canales PLLC. We are available for virtual consultation.

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Canales PLLC

As a minority-owned law firm with experience across a broad range of industries and subject matters, Canales PLLC understands the importance of creating diverse, client-centered solutions that cater to each client’s particular needs.

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