SEC Investigations

A Securities and Exchange Commission matter may begin quietly—with a request for documents, a call seeking an interview, or a subpoena for records or testimony. But the first response to the "SEC" can become part of a much larger investigative record.

The attorneys at Newman Litigation represent people nationwide when the SEC starts asking questions and the client's role in the inquiry may not yet be clear. 

Before information changes hands, the firm's lawyers focus on what the SEC is asking for, why the client may have been contacted, and what the response could mean as the inquiry develops. Contact the firm to discuss where you stand and how to approach the agency's request. 

Assessing Your Role in the Investigation

Before responding substantively to the SEC, Newman Litigation works to determine why the agency has contacted you and where you fit into its inquiry. A business or individual providing information as a witness may face different concerns from someone whose own conduct appears to be under investigation. 

That distinction influences how the firm approaches requests for records, communications with SEC staff, and preparation for testimony. The firm reviews the information available about the inquiry and the client's connection to the conduct under examination rather than assuming that every SEC contact carries the same implications. 

As the investigation develops, the firm continues assessing whether the agency's focus is changing and what that means for the client's response. 

Responding to SEC Document Requests

When the SEC seeks documents or other information, the firm reviews the request in the context of both the investigation and the client's records. The goal is to determine what must be provided, identify issues to address before production, and avoid treating a potentially significant investigative demand as a routine records request. 

SEC investigations may proceed informally through voluntary requests or under a formal order of investigation. A formal order gives designated SEC staff authority to issue subpoenas compelling documents and testimony. 

The firm's experience responding to federal investigative subpoenas informs how it approaches the scope of the demand, document collection, privilege review, and communications with SEC staff. It also addresses preservation early so that potentially relevant records and communications are retained while the inquiry is pending. 

Preparing for SEC Testimony

Whether testimony is requested voluntarily or compelled by subpoena, Newman Litigation can prepare you around the facts, records, and subjects likely to matter in the investigation. That preparation begins with understanding the documents and events that may be discussed rather than rehearsing answers in isolation. 

For an individual whose conduct is being examined, or whose testimony may affect personal exposure, we keep that individual position distinct from the interests of a company or other parties involved. 

When potential criminal exposure is a concern, the firm also assesses Fifth Amendment considerations before testimony, including whether invoking the privilege could support an adverse inference in a later civil enforcement proceeding. The firm works through these issues and the relevant record with the client before deciding whether to testify. 

Responding to a Wells Notice

If SEC staff is considering recommending an enforcement action, it may issue a statement called a Wells Notice. A Wells notice ordinarily gives the recipient an opportunity to present a position before the Commission decides whether to authorize an action, and the SEC's current Enforcement Manual generally provides four weeks for a Wells submission. 

For clients who receive a Wells Notice, the firm works with the client to determine whether a submission is appropriate and, if so, develop arguments directed at the issues SEC staff has identified. Where a negotiated resolution is appropriate, the firm can also engage with staff about potential settlement and evaluate proposed terms with the client. 

Risks Beyond the SEC Investigation

Newman Litigation considers potential consequences outside the SEC proceeding when they could affect decisions made during the investigation. An SEC matter can lead to a civil action in federal court or an administrative proceeding, and potential criminal violations may also be referred to criminal authorities. If related litigation or another government investigation develops, the firm assesses how the proceedings intersect and how decisions in one may affect the client's position in another. 

Building the Defense from the Record 

If the SEC proceeds with enforcement, Newman Litigation uses the record developed during the investigation to assess the allegations and prepare the defense. Documents produced, investigative testimony, communications with SEC staff, and positions taken earlier may all become significant once the matter is contested. 

By considering the record throughout the investigation, the firm can identify evidence relevant to the SEC's allegations, assess weaknesses in its position, and build the defense around the history of the matter rather than starting from scratch after enforcement is authorized. 

SEC Investigations Attorneys Serving Clients in New York and Nationwide

Lawyers at Newman Litigation have represented numerous clients responding to subpoenas and information requests in government investigations, including matters involving the Securities and Exchange Commission. 

From the firm's Brooklyn office, lawyers represent clients facing SEC scrutiny in New York and across the United States. Whether the agency is requesting information, seeking testimony, or considering enforcement, the firm's representation is shaped by the client's role and the record developing around the investigation. 

If the SEC has contacted you, requested records or testimony, or issued an investigative subpoena, contact Newman Litigation's attorneys to discuss the matter.