Criminal Defense Lawyers

Can the SEC Subpoena My Accountant or Auditor? Understanding Third-Party Requests

CAN THE SEC SUBPOENA MY ACCOUNTANT OR AUDITOR? UNDERSTANDING THIRD-PARTY REQUESTS

If you’re reading this article, it’s because you’re worried about an SEC investigation, and need answers right away. You think you might be under investigation by the SEC, and you think the SEC is about to subpoena your accountant for more information. The goal of this article is to answer that quesiton

SEC SUBPOENAS: WHAT DOES IT MEAN?

A subpoena that was issued by the U.S. Securities and Exchange Commission (SEC) is a demand for documents or testimony, in pursuit of an investigation. This means your accountant who was handling your financial records, or the auditor who was monitoring your company’s books, can be forced to hand over evidence and documents. It means the SEC is investigating you, and think you’ve done something wrong – and they’re looking for evidence to prove or disprove it. It also means the SEC can use that information to figure out whether you broke securities laws, like the Securities Exchange Act of 1934. When the SEC demands your accountant’s files, it’s looking for proof of fraud or other wrongdoing and it needs the documents, like trading logs, to see what you did. This can lead to serious consequences, like huge fines or even criminal charges.

WHY DOES THE SEC GO AFTER THIRD PARTIES?

The SEC, which is responsible with overseeing the securities markets in the USA, believes accountants and auditors have key insights that reveal what really happened. Auditors and professionals, unlike lawyers, don’t have attorney client privilege. These professionals have documents that were prepared during an audit, plus emails and notes that show if a company’s financial statements were accurate. If the SEC finds evidence that indicates you gave false or misleading information, you could face charges that carry heavy penalties. There is no simple way around it. It’s likely the auditor/accountant will fold, if you don’t get involved and have your attorneys get involved.

POTENTIAL PENALTIES, CRIMES, AND PUNISHMENT

Penalties that are enforced by the SEC can be severe. When the SEC sees information that was concealed or tampered with, it can refer the matter for criminal prosecution to other prosecuting agencies:

• Fines: You could pay thousands—or even millions—of dollars in fines. This can ruin your finances and impact your family’s financial stability.
• Prison Time: If you are found guilty of serious offenses like fraud, you might end up serving time in a federal correctional institution. This is a life-changing event that can affect everything about your future. Being a convicted felon can change your life.
• Other Consequences: You could face restrictions that keep you from serving as an officer or director of a public company, plus lose professional licenses.

WHAT IF MY ACCOUNTANT OR AUDITOR REFUSES TO COOPERATE?

When an accountant who was subpoenaed refuses to comply, that accountant will face contempt charges. This can result in penalties that harm both you and the accountant. It can also push the SEC to dig deeper, which might lead to more scrutiny of your finances. What we recommend is that your attorney get involved at this stage, and intercede, so that instead of the accountant being forced to reveal everything – a controlled, and negotiated, release of information can be secured.

STRATEGIES WE USE TO DEFEND YOU

We are recognized as a top rated state, and federal, criminal defense law firm. We can help you.
Below are strategies that our team might use if you find yourself dealing with an SEC subpoena:

1. Challenging Scope: We look at the subpoena that was served and see if it’s overly broad. When a subpoena is too broad, we can argue in court for it to be narrowed. This can lower the amount of private information you or your accountant must produce. This can reduce the scope of the investigation.
2. Protecting Privileged Info: Certain records that were shared with your accountant can contain privileged communications. We can file a motion to protect these records from disclosure, so they stay out of the SEC’s hands. If these privileged communications are revealed, it can increase your legal exposure, which might lead to harsher penalties. Our goal is to protect you, and your company.
3. Negotiating With the SEC: Sometimes the SEC is willing to negotiate with you or your lawyer. Our team can try to settle the case before it escalates. If we reach a settlement, it often reduces your fines or keeps you out of prison. The goal is to avoid charges, formal referrals to other agencies.
4. Preparing a Strong Defense: If your case goes to trial, we use the evidence that was gathered by experienced investigators to show you lacked any criminal intent. Getting a not guilty verdict can help you avoid fines and other punishment.

GOVERNMENT LINKS FOR MORE INFO

If you want details about the SEC’s authority, you can visit https://www.sec.gov. That official website that was created by the federal government explains your rights and possible penalties. You can also find helpful info about federal investigations at the U.S. Department of Justice website: https://www.justice.gov. Staying informed about these laws can help you make better choices, which can keep you out of trouble.

DEFENDING YOU: OUR APPROACH – SEC DEFENSE LAWYERS

We have offices throughout Long Island NYC. Our attorneys have over 50 years of combined experience in complex cases. We understand how the SEC and federal prosecutors build a case. That means we can create a defense strategy aimed at finding weaknesses in their allegations. Evidence that was obtained illegally might be suppressed in court, which can mean the prosecution loses a major piece of its case. The goal is to weaken the SEC’s case, and undermine the efforts to build a strong case.

REGARDLESS OF THE SITUATION YOU FIND YOURSELF IN

We have experience dealing with some of the toughest SEC legal issues nationwide. This means you can trust our defense lawyers to handle your SEC investigation. If your accountant or auditor has been subpoenaed, don’t wait until it’s too late. Reach out to us for a risk free consultation. This step can help you avoid the harsh consequences of an SEC probe. We have over 50 years of combined experience dealing with SEC issues.

AVAILABLE 24/7 FOR A FREE CONSULTATION

We are available 24/7 to speak with you about your case. If you’re worried about the SEC seizing your accountant’s records, call us now. Every moment you wait gives federal investigators more time to build a case against you. Once charges are filed, it becomes tougher to get them reduced or dropped. We are recognized as a top rated state, and federal, criminal defense law firm, who can help you right away.