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How Can an SEC Lawyer Help You?

How Can an SEC Lawyer Help You?
Written by editor

Are you baffled by a legal notice that says SEC investigators will investigate you for insider trading, stock manipulations, or Ponzi schemes? It may come as a surprise, but every year, the Securities and Exchange Commission investigates traders with whom they have reasonable doubts. Failing to answer their twisted questions may land you in a lot of legal trouble. If you don’t want to get into all that trouble, make sure you hire an experienced SEC lawyer.

The investigation process

The SEC targets security frauds based on five principles:

  • Focus on the trader’s accountability.
  • Focus on technological changes.
  • Monitor the allocation of resources.
  • Assess the main street investor.
  • Impose remedies effective for future enforcement goals.

The SEC starts by conducting an investigation, makes all the charging decisions, prosecutes the guilty, and settles the case. Your SEC investigator will issue a subpoena for all your trading documents. Alternatively, if you can’t provide all the documents, you may need to share your testimony for the details that the SEC requires.

It is essential to respond to the initial subpoena. Whether you want to testify or produce the documents, it is crucial that you cooperate with the investigators, or invoke your Fifth Amendment Rights. But whatever decision you make, don’t forget to keep your SEC lawyer in the loop. He is the best person to guide you after you receive the subpoena.

Role of an SEC lawyer

Will it be beneficial to submit the required documents or should you testify to the SEC? Making the wrong decision can turn the case against you. An experienced SEC lawyer won’t let that happen. The first job of the lawyer is to go through the documents that the SEC demands. He needs to find out the extent of damage that the SEC can bring in regards to the case. This also helps the lawyer to narrow down the areas where he needs to defend.

According to one of the most renowned SEC attorneys in the US, Dr. Nick Oberheiden, 95% of people panic when they get a legal notice from the SEC. They immediately consider that they were part of some illegal scheme that has landed them in trouble. In reality, most of these cases get solved within a few months. But you need the backing of an experienced lawyer to represent you in court. Mumbling in front of the judge will prove that the opposition is right.

Your SEC lawyer will prepare you for the case thoroughly. These lawyers, with their unparalleled experience, are aware of the type of questions the opposition will ask. They not only go through the documents the SEC asks for, but also educate you about the same materials to prepare you for the questions you will face in court and how you should answer them. Your lawyer will prepare a questionnaire consisting of the possible questions and the answers that you should provide.

Now that you know why hiring an SEC lawyer is so crucial, make sure you make an appointment before submitting the documents mentioned in the subpoena.

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About the author


Editor in chief is Linda Hohnholz.