SEC Investigations Defense Lawyers
If you’re on our website, it’s because you’re facing an SEC investigation and need the best possible law firm to help represent you. At Spodek Law Group, we understand the pressure these investigations create, and we take this very seriously. We are a top-rated New York / Federal criminal defense law firm with over 50 years of combined experience. Our criminal lawyers have handled some of the toughest legal issues nationwide pertaining to the SEC on a federal level. Our criminal attorneys pride themselves on delivering the best possible customer service—because in high-stakes matters like this, your future is on the line. You could face financial penalties, and even potential jail time. It’s a big issue, and one that requires serious legal help.
Why SEC Investigations Are More Than Just Civil Proceedings
SEC investigations often appear civil at first, usually referencing statutes like the Securities Exchange Act of 1934 (15 U.S.C. § 78a et seq.) or Rule 10b-5 (17 CFR § 240.10b-5). But. They can spiral into criminal charges if the Department of Justice steps in. So the initial phone call or subpoena from the SEC might feel simple—until you realize how quickly it can become a federal indictment for securities fraud (18 U.S.C. § 1348). This is not a trivial matter, and if you think you can just ignore it – you will likely go to jail.
Securities fraud allegations happen more frequently than people expect. Parallel investigations—where the SEC and federal prosecutors coordinate—are common in situations like this. And once that unfolds, you could be looking at serious prison time, enormous fines, or both. You do not want to deal with this alone.
Scenarios That Illustrate the Complexity
Imagine a CFO who signs off on financial statements that the SEC alleges are “materially misleading.” You might think it’s a routine restatement issue. But prosecutors see it as intentional fraud, claiming you inflated revenues to mislead investors. So you scramble to gather every email, every spreadsheet, every board minute.
Next, you discover potential insider trading accusations swirling around your team—perhaps an executive traded stock after receiving internal forecasts. This is not a small issue. Now you’re facing two separate SEC angles, plus the impending possibility of a criminal grand jury subpoena. So it’s a classic double bind: do you cooperate broadly with the SEC, hoping they’ll go easy on you, or do you stand your ground, and assert your 5th amendment rights, in order to avoid giving more ammunition to the DOJ? Yes. This is how nuanced these cases become. You need someone who gets it.
Our Defense Strategies Are Tailored
We know some law firms treat SEC investigations like a negotiation over fines. This is an oversimplification of the situation, especially when there can be a parallel criminal case being built against you. At Spodek Law Group, we don’t see it that way. We understand that a seemingly small settlement can open the door to further scrutiny by other agencies – often these settlements result in referrals to other state and federal regulators. We also recognize that giving too little information can increase the SEC’s suspicion. We weigh each move carefully. Sometimes, it’s best to challenge the scope of the SEC’s subpoena or to file motions that restrict how they can use evidence—particularly if we sense a parallel criminal case incoming. Other times, it might be strategic to provide certain details voluntarily, if doing so convinces the SEC your actions lacked the fraudulent intent required by 17 CFR § 240.10b-5.
But we never forget your real-life concerns. You want to keep your license, your reputation, and your ability to work. You want to avoid crippling fines or restitution. And you definitely want to avoid time behind bars.
Potential Penalties (And How We Aim to Minimize Them)
– Civil penalties: The SEC can seek huge fines, bar you from serving as an officer or director, and impose other lifetime bans.
– Criminal convictions: Under 18 U.S.C. § 1348, a securities fraud conviction can lead to up to 25 years in prison.
– Restitution and disgorgement: You might face demands to repay profits or reimburse alleged victims.
– Reputation damage: Even an SEC cease-and-desist order can tarnish your standing in the industry.
Detailed Approaches to Key Statutes
Below is a table illustrating common statutes, typical allegations, and possible defense angles:
| Statute | Common Allegations | Potential Defense Angles |
|---|---|---|
| 15 U.S.C. § 78j(b) | Market manipulation, insider trading | Lack of scienter, reliance on expert legal advice |
| 17 CFR § 240.10b-5 | Misleading statements, deceptive practices | No material misstatements, insufficient evidence |
| 18 U.S.C. § 1348 | Securities fraud with criminal penalties | Good-faith error, lack of willful misconduct |
Building the Story for a Successful Outcome
We emphasize the story behind each client, each meeting, each communication. We might show you had a reasonable basis for the statements you made to investors, or that “insider info” was already public knowledge. We might question how the SEC gathered its evidence—did they violate your Fourth Amendment rights by demanding irrelevant documents or going on a fishing expedition? We might even highlight how your compliance officer flagged concerns, and you attempted to correct issues before the SEC came calling. And yes, sometimes a plea deal or settlement is the right move – it all depends on the situation. If prosecutors are ready to file charges, cooperating can secure a deferred prosecution agreement. But we only recommend it if it truly benefits you. That’s our guiding philosophy.
Why Spodek Law Group Is Different
We have offices throughout Long Island and NYC, but our team handles cases nationwide. We’ve represented clients in situations that others labeled “unwinnable.” We also use a completely online digital portal, meaning all communications and document submissions can be handled securely and virtually—no matter where you’re located.
So you’re not alone. We’re here 24/7 to help, and we treat each SEC investigation with intense attention to detail.