What To Know About SEC Investigations


If you are the target of an investigation by the Securities and Exchange Commission, do not assume it will go away on its own. Instead, it may linger for months or years, all the while you face the possibility of fines, loss of license and your job or business, and the possibility of criminal charges if the SEC refers your matter to the Department of Justice. When this happens, the smart thing to do is to become aware of the investigation as soon as possible and hire legal representation. If you need to know more about SEC investigations, here are some important details to keep in mind, as well as how New York securities attorneys at Herskovits PLLC can help you navigate this complex process.

Tips and Referrals
For an SEC investigation to begin, the agency usually relies on tips and referrals from various sources, such as:

–Tips from customers, coworkers, or whistleblowers
–Congressional referrals where constituent has complained to Congressperson
–Referral from state regulators

Once you find out any tips or referrals have been made, be proactive and contact an experienced attorney immediately.

Recognize the Signs of an Investigation
Contrary to what you may believe, a company is not obligated to let you know an SEC investigation is underway. Because of this, it is crucial you recognize what to look for that will indicate the SEC is investigating. For example, if Human Resources personnel, outside law firms, or other similar organizations request your files or ask to interview you about specific business or financial transactions, you may be under SEC investigation.

Rather than be caught off-guard by an SEC investigation and its potentially serious consequences, contact the New York securities attorneys at Herskovits PLLC to ensure your legal rights are protected from start to finish. By doing so, you will have the peace of mind as well as legal experience needed to navigate these complex and stressful investigations.

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