Lying to the Securities and Exchange Commission is a dangerous game with potentially high-stakes consequences. An obvious proposition, but all too often ignored by those who don’t understand that it is infinitely better to stay silent and invoke the Fifth Amendment rather than to speak and inadvertently create new, potentially more serious legal liabilities for themselves.
Case in point: the federal criminal authorities recently indicted Richard Cody, a former investment advisor and registered representative, for allegedly lying in a SEC deposition. Cody was also criminally charged for defrauding his former clients in connection with the management of their retirement assets in violation of the Investment Advisors Act of 1940.
The indictment’s alleged factual basis arises from the same conduct as set forth in a previously filed SEC Complaint against Cody. In December 2016, the SEC secured a preliminary injunction and asset freeze against Cody and his firm, Boston Investment Partners LLC, and charged violations of the antifraud provisions of the federal securities laws. The SEC’s enforcement action, which is pending, seeks civil penalties, injunctive relief, disgorgement of illegal gains and prejudgment interest.
David Chase is a SEC defense attorney and former SEC Prosecutor who represents and defends nationwide investment advisors and stockbrokers who are being investigated or prosecuted by the SEC, FINRA or the Department of Justice. Mr. Chase is the principal of the Law Firm of David R. Chase, a SEC law firm, located in Fort Lauderdale, Florida. For a confidential consultation, you may contact Mr. Chase at: email@example.com or toll-free at: (800) 760-0912. The law firm’s website is: securitiesfrauddefense.net.