Securities Fraud and SEC Defense Lawyer

Defending Yourself Against SEC Enforcement

The Securities and Exchange Commission (SEC) is responsible for regulating the US securities market. However, it also has a law enforcement division that investigates and prosecutes those who break the law. The Enforcement Division may bring charges against individuals, investment advisors, company executives, companies at large, investors, and other entities for various crimes in civil, criminal, and administrative proceedings.

Whether you are facing a criminal or civil investigation by the SEC’s Enforcement Division, it is crucial to defend yourself with an experienced defense lawyer right away. The SEC has broad authority to enforce many different statutes with serious penalties for violations such as hefty fines and long prison sentences. It is common for the SEC to publicly announce litigation releases detailing criminal sentences, securities litigation cases brought against certain companies and investors.

Every year the SEC publishes a report detailing its work; in 2019’s fiscal year report they stated their continued efforts towards enforcing penalties regarding securities fraud violations while focusing on individual accountability of investors through technology advancements. They will use remedies to further agency goals continually assessing how resources are allocated.

With these principles in mind throughout 2019’s fiscal year there were several different enforcement actions taken by the SEC Fraud Defense team targeting companies and individuals suspected of harming single investors through fraudulent actions.

Areas of Investigation

There are many ways to commit fraud which makes it difficult for regulatory agencies like the SEC to keep up with new trends each year. Here are some areas where significant investigations have occurred:

• Misrepresenting or omitting important information when pitching investors
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• Manipulating the price of certain securities on the market
• Stealing funds or securities from customers/investors
• Engaging in insider trading activities/li>
  
• Sale non-registered securities without proper documentation/li>
  

Fraud investigations often begin through email, mail solicitations but social media solicitations have also become prevalent in recent years. Scam artists/companies contact investors using social media violating strict marketing rules regarding mail, email, and social media solicitations leading them subject to penalties.

Biomedical/high-technology investment scams have been under scrutiny by the SEC as well where many companies offer potentially fraudulent investment opportunities with experimental technology. If they open to investors, they’re required to comply with the SEC’s rules about transparency and complete all paperwork for filing/registering their company as well as signing up for exemptions.

In conclusion, defending yourself against an SEC enforcement action is crucial because of the serious penalties that come with violations. The Enforcement Division has broad authority to enforce many different statutes in civil, criminal, and administrative proceedings. It is important to have an experienced defense lawyer by your side who can help you navigate through this process successfully.