If you have just received a SEC subpoena, it is critically important to understand the basics – what a subpoena is, what is seeks, your legal rights and obligations in responding to it, and why it is necessary to be represented by competent SEC defense counsel in handling it.
What should I do if I receive a SEC subpoena?
Hire an experienced, knowledgeable SEC defense attorney to protect your interests before responding to the SEC. Speaking with the SEC and/or producing documents in response to a SEC subpoena (even if you think you have done nothing wrong), without legal representation can cause irreparable damage to your case. Don’t go at it alone — the stakes and potential consequences are simply too high.
Do I have to respond to a SEC subpoena?
Yes. The law requires you to respond in some fashion, you can’t just ignore it and hope it goes away. If you do not timely respond, the SEC can go to court to enforce compliance and may seek penalties.
Is a SEC subpoena criminal?
No. A SEC subpoena is civil in nature as the SEC has no criminal authority. However, the SEC can refer matters to the criminal authorities for prosecution.
Does receiving a SEC subpoena mean that the SEC thinks I violated the law?
No, not necessarily. A subpoena is simply a tool used by the SEC to conduct its non-public, fact-finding investigations. It does not, per se, mean that the SEC thinks you violated the federal securities laws.
What can a SEC subpoena request of me?
It will either compel you to produce documents (subpoena duces tecum) and/or require your appearance (either live or remotely) to give sworn testimony (subpoena ad testificandum) before the SEC staff.
What type of documents does a SEC subpoena ask for?
It depends upon the type of case being investigated. However, typically records sought include: bank records, securities brokerage statements, emails, text messages, etc.
Can I ignore an SEC subpoena?
No. Ignoring a subpoena is a serious matter that can lead to contempt of court proceedings, significant fines, and potentially jail time.
How long do I have to respond to a SEC subpoena?
Typically, the deadline is two weeks from the date of the subpoena for the production of documents, which will be specified in the subpoena. It is common though for counsel to obtain an extension of time, as well as to produce documents on a rolling basis over a period of time.
If your sworn testimony is requested, the date will be reflected in the subpoena. Usually, testimony is scheduled several weeks after the deadline for the production of documents to allow the SEC staff sufficient time to review the documentation before speaking with you. The testimony date is typically not set in stone and is often rescheduled.
What are my legal rights in responding to a SEC subpoena?
If you are an individual, you can assert your Fifth Amendment Right against self-incrimination in response to document requests (in most cases), as well as to the requirement that you provide substantive testimony. You can also assert privileges, such as attorney-client, to legally withhold certain information. A corporation or entity, however, has no Fifth Amendment Right.
Can an SEC subpoena attorney help me respond to the SEC Subpoena?
Yes. A SEC subpoena lawyer can add substantial value by preserving your constitutional rights, asserting appropriate privileges on your behalf, communicating with the SEC to limit the scope and time frame of the subpoena, and advising you on the nature of the investigation to strategically defend your interests, and to avoid you being charged.
Contact an SEC Subpoena Lawyer
If you have more questions about an SEC subpoena, call SEC subpoena lawyer David Chase, Esq., today at 800-760-0912.
