Maryland SEC Investigation Lawyer

An investigation by the Securities and Exchange Commission (SEC) can lead to potential civil enforcement actions and criminal charges. A person or organization facing such an investigation needs to be ready to cooperate and respond appropriately. Since these investigations are usually complicated and time-consuming, legal assistance is crucial.

A qualified Maryland SEC investigation lawyer can help you understand the key reasons for the investigation and act according to the law. Together, you can create a strategy that helps avoid unnecessary obstacles.

Reasons for an SEC Investigation

In Maryland, a person or company can become of interest to SEC investigators if they are suspected of violating securities laws. Some common reasons why an investigation may begin include:

• Insider Trading: The SEC investigates individuals or entities suspected of trading securities based on non-public information. Employees and executives who gained access to confidential data are suspects.
• Accounting Fraud: If a company is suspected of manipulating its financial statements, the SEC may open a formal investigation into the alleged misconduct.
• Misleading Disclosures: Organizations that provide deceptive information in reports or investor communications can be subject to scrutiny for misleading shareholders.
• Market Manipulation: Practices such as artificially inflating stock prices or engaging in deceptive trading schemes may prompt an SEC inquiry.
• Failure to Register Securities: Companies offering securities without properly registering them with the SEC or qualifying for an exemption may face enforcement action.
• Violations of Broker-Dealer Regulations: Firms acting as brokers or dealers without compliance with FINRA and SEC rules may trigger an investigation.

An experienced SEC investigation lawyer in Maryland can help pinpoint the reason for an SEC investigation and consult the person or organization accordingly.

Two Phases of the SEC Investigation

The SEC investigation has two phases. Each one demands a different reaction from whoever is under it.

Informal Phase

During the informal phase, the SEC begins gathering information without issuing subpoenas or using formal legal tools. Investigators may freely request documents or ask to conduct interviews.

At this stage, there are fewer procedural requirements, but the risk of a formal investigation remains high. A competent SEC investigation lawyer in Maryland can advise when to cooperate and how to do it without disclosing unnecessary information.

Formal Phase

If the SEC determines there is sufficient cause, it may initiate a formal investigation. In this phase, the agency gains subpoena power to compel testimony and obtain records.

At this point, an attorney can help manage document production and help you to decide whether to provide testimony and  prepare you to testify if necessary.

After collecting the necessary evidence, the SEC may offer a settlement. A lawyer can help negotiate a favorable resolution.

What Is a Wells Notice?

A Wells Notice is a formal letter from the SEC informing the relevant party that the agency plans to bring enforcement action against them. The recipient has a chance to respond before the enforcement action begins. They usually have only 30 days to do this.

Consult a Competent SEC Investigation Lawyer in Maryland Today

If you suspect that you or your organization may be under SEC scrutiny, you need to consult a skilled Maryland SEC investigation lawyer. Regardless of what phase the investigation is in, you need legal counsel to guide you through it seamlessly.

At Price Benowitz, we have many years of experience navigating SEC investigations and helping our clients avoid unfair legal action. Call us to discuss your case at any time.