Hire a Securities Defense Attorney to Respond to an SEC Subpoena

By Mark J. Astarita, Esq.

For individuals and businesses involved in securities-related matters, facing a subpoena can be daunting. These investigations can be lengthy, detailed, and quite intense. The SEC wields substantial authority to investigate potential violations of securities laws, and responding to a subpoena demands a keen understanding of the legal process and regulations.

Having spent my career defending firms, funds and brokers in SEC investigations, I have seen quite a bit. I never understand when I see individuals who respond to an SEC subpoena or FINRA 8210 request by using a corporate attorney. This is a significant mistake. First, every securities law violation has the potential to be a crime and to be prosecuted as such. Second, you have no idea how long the investigation has been ongoing and whether there are continuing fraud inquiries when you receive your SEC subpoena.

Your responses and submitted documents could lead to further inquiries and potential problems.

I know it sounds self-serving, but you should retain an attorney who is well-versed in handling SEC investigations. A qualified securities defense attorney is essential to successfully navigating this complex terrain.

Understanding SEC Subpoenas

Before delving into the hiring process, let’s first understand what an SEC subpoena entails. An SEC subpoena is a legal document issued by the SEC to investigate possible securities law violations. This document compels individuals or entities to produce documents, provide testimony, or both related to the investigation.

Why Hiring an Attorney is Crucial

You should not attempt to respond to an SEC subpoena on your own. The SEC Staff attorneys are not your friends, despite how friendly they may appear when you speak to them. The legal complexities, potential consequences of mishandling the process, and the need to protect your rights demand the expertise of a securities defense attorney. Here’s how you can choose the right one:

1. Research and Compile a List of Potential Attorneys

Start by researching attorneys who specialize in securities defense. Compile a list of potential candidates based on online research, referrals from trusted sources, or colleague recommendations. I get many of my new clients from referrals from former clients.

2. Evaluate Their Experience in Securities Law and SEC Investigations

Not all attorneys are equal regarding securities law and SEC investigations. Look for attorneys with a proven track record in handling similar cases. Their experience in dealing with the SEC is invaluable. my partners and I have over 100 years of combined experience with SEC investigations and are former SEC Staff Attorneys and Brokerage Firm defense attorneys.

3. Schedule Consultations with Potential Attorneys

Set up initial consultations with the attorneys on your list. These meetings are crucial for assessing their suitability for your specific situation. We can do the initial consultation via Zoom or telephone at your convenience.

4. Ask Important Questions During Consultations

During consultations, ask critical questions such as:

• How familiar are you with SEC investigations?
• What strategies would you employ in responding to an SEC subpoena?
• Can you provide references from past clients involved in similar cases?
• What is your fee structure, and what costs should I anticipate?

5. Evaluate Their Communication Skills and Approachability

Effective communication with your attorney is paramount throughout the process. Ensure that your attorney is approachable, responsive, and willing to keep you informed at every step.

Costs and Fee Structures

The costs associated with hiring a securities defense attorney can vary widely. We typically charge by the hour and use the lowest-cost attorney appropriate for the task. In some instances, we can offer flat fees for specific services. While cost is a factor, it should not be the sole determinant in your decision. Quality legal representation can significantly affect your SEC subpoena response. We have successfully shut down investigations before they become lawsuits and resolved enforcement proceedings with favorable results for our clients.

Representing Advisors and Investors, Nationwide.

Case Studies and Success Stories

Reputable securities defense attorneys often have case studies and success stories to share. These real-life examples can illustrate how they successfully guided clients through SEC investigations and highlight their ability to protect their client’s interests. During your consultation, ask us for examples of cases that we have handled that are similar to yours. Mark Astarita’s compilation of his significant cases are available at SECLaw.com.

How Serious Is an SEC Investigation?

SEC investigations should never be taken lightly. The consequences of securities law violations can range from fines and penalties to criminal charges. Therefore, hiring a skilled attorney to respond to an SEC subpoena is not just an option but a necessity.

Conclusion and Next Steps

In conclusion, when facing an SEC subpoena, your choice of a securities defense attorney can significantly impact the investigation’s outcome. Thorough research, evaluations, and consultations are essential in selecting the right attorney to navigate the complexities of SEC investigations effectively.

Remember that an experienced attorney can help you respond to the SEC subpoena and guide you in maintaining compliance with securities laws and regulations in the future. Take your time to make an informed decision, and once you’ve hired the right attorney, collaborate closely with them to ensure the best possible outcome.

If you’re ready to take the first step in protecting your interests during an SEC investigation, contact us for a consultation. You can call our office at 212-509-6544 or email us at mja@sallahlaw.com. Our team of experienced securities defense attorneys is here to assist you every step of the way.

Click here to learn what happens if I ignore an SEC Subpoena?

Click here to learn more about what securities lawyers do.

Click here to understand how SEC investigations work.

Click here to learn about how long an SEC investigation takes to complete.

Click here to learn more about the defense of SEC investigations.

Rule 8210 – How You Respond Makes a Difference

Representing Advisors and Investors, Nationwide.