Registered Rep Facing SEC Charges

Is the SEC Targeting You? Call Our SEC Defense Lawyers for a Free and Confidential Risk Assessment

Registered representatives can face a variety of compliance obligations, and non-compliance with these obligations can lead to U.S. Securities and Exchange Commission (SEC) enforcement actions. If you are a registered representative facing an SEC investigation, you need to take the necessary steps to protect yourself immediately. Likewise, if you are facing SEC charges as the result of a recent law enforcement investigation, you need to defend yourself effectively to avoid unnecessary consequences.

Spodek Law Group represents registered representatives in SEC matters nationwide. If you are facing charges and have concerns, contact us for a free risk assessment today. During your free risk assessment with one of our senior SEC defense attorneys, we will help you understand the situation at hand so that you can make informed decisions about your legal representation and your next steps.

Put our highly experienced team on your side

Our legal team is composed of senior attorneys and professionals with significant experience handling SEC enforcement actions. We are committed to providing strategic, effective defense for registered representatives and other clients facing SEC investigations or charges.

Common Allegations in SEC Enforcement Actions Targeting Registered Representatives

The SEC investigates registered representatives for a wide range of statutory and regulatory violations. Broadly, these violations fall into two categories: (i) fraud and other improper dealings with clients; and, (ii) fraud and other improper dealings with other parties. In both of these categories, the SEC pursues charges for a broad range of offenses, from making misrepresentations about investments to insider trading.

Some examples of the more common allegations in SEC enforcement actions targeting registered representatives include:

• Misrepresenting or omitting material facts about investments or clients’ shares
• Recommending unsuitable investments
• Unauthorized trading
• Excessive trading (churning)
• Failure to act in clients’ best interests
• Conflicts of interest
• Trading on insider information
• Making false or misleading statements about companies’ securities
• Market manipulation
• Front running

These are just examples. In SEC enforcement actions, registered representatives can face allegations of other statutory and regulatory violations as well. In these cases, the specific allegations at issue will determine the specific defense strategies that need to be executed.

The Stakes Are High for Registered Representatives Facing SEC Charges

Generally speaking, when defending against SEC charges, the goal is to avoid a finding of liability. If the SEC finds you liable for a statutory or regulatory violation, you can face significant penalties. For example, depending on the specific allegations involved, potential penalties in SEC enforcement actions against registered representatives include:

• Civil monetary penalties
• Restitution
• Disgorgement
• Being required to register as an investment adviser
• Being barred from the securities industry
• Limiting access to your personal brokerage accounts

Along with these direct penalties, registered representatives charged by the SEC can face other risks as well. For example, even if you are not barred from the securities industry, your brokerage firm may choose to part ways with you due to your SEC enforcement action. Defending yourself effectively is critical, and this makes it critical to engage experienced defense counsel as soon as possible.

While registered representatives’ SEC enforcement actions are typically civil in nature, they can lead to criminal charges in some cases. If the SEC believes that it has uncovered evidence of intentional fraud or a “scheme or artifice to defraud,” it may refer your case to the U.S. Department of Justice (DOJ). Federal criminal securities fraud charges carry six-figure fines and years—if not decades—of federal imprisonment.

Put Our Experience with the SEC to Work for You

When facing an SEC enforcement action, a comprehensive and strategic approach is necessary to mitigate your risk of facing civil or criminal penalties. At Spodek Law Group, we offer experienced legal representation for SEC enforcement actions nationwide. Our SEC defense team includes senior attorneys, former high-ranking SEC officials, and other professionals who have significant experience on both sides of SEC enforcement actions.

We have successfully represented brokerage firms, investment firms, brokers, advisers, and other clients in a wide range of federal matters. We have also successfully represented clients in SEC enforcement actions involving a broad range of statutory and regulatory allegations—both as defense counsel and during our time working for the SEC. Our former SEC officials work in close collaboration with our defense attorneys to provide well-informed and highly effective legal representation throughout the SEC’s enforcement process.

If you have received an SEC subpoena or are facing the possibility of facing charges based on an SEC investigation, we can help. We encourage you to contact us immediately to arrange a free risk assessment with one of our senior SEC defense attorneys. We will conduct your risk assessment as soon as possible, and then we will work with you to develop and execute a comprehensive defense strategy focused on securing a favorable pre-charge resolution if at all possible.

What To Do if You Are Facing SEC Charges as a Registered Representative

If you are facing SEC charges as a registered representative, what do you need to do? The single most-important thing you can do is to seek experienced legal representation promptly. Once you engage an experienced SEC defense team, your attorneys will be able to guide you through your next steps while focusing on resolving your case without unnecessary consequences.

From there, your attorneys will need to work quickly to intervene in the SEC’s enforcement process. The sooner your attorneys can do this, the better. By intervening in the SEC’s enforcement process promptly, your attorneys will be able to begin providing targeted guidance while also working to steer the investigation toward a favorable resolution.

FAQs: Hiring a Defense Team for an SEC Enforcement Action

Do I Need to Hire an Attorney to Represent Me in an SEC Enforcement Action?

If you are facing an SEC enforcement action as a registered representative, it is important that you hire an experienced attorney to represent you. The SEC’s enforcement process is both complex and high-risk, and you will need to rely on the advice, insights, and strategic defense representation of experienced legal counsel.

How Can a Law Firm Help Me with an SEC Enforcement Action?

A law firm can help you with an SEC enforcement action in multiple different ways. Your attorneys will intervene in the SEC’s investigation promptly and conduct an in-depth risk assessment. They will then use the insights gained from their risk assessment to develop and execute a comprehensive defense strategy custom-tailored to the circumstances at hand.

What Should I Do if I am Facing SEC Charges?

If you are facing SEC charges, you should hire an experienced defense firm right away. By the time you are facing charges, you will already have your work cut out for you; and, at this stage, you need highly experienced counsel to help you make informed decisions and defend yourself effectively.

How Do I Choose a Law Firm to Handle My SEC Case?

If you are facing an SEC enforcement action, you need to choose a law firm with specific and relevant experience. The more experience a firm has representing clients in SEC enforcement actions and in the securities industry, the more it will be able to do to protect you.

If I Contact Spodek Law Group, What Can I Expect During My Free Risk Assessment?

During your free risk assessment at Spodek Law Group, you will meet with one of our senior attorneys who will discuss your situation in confidence. Your attorney will help you understand what the government’s case entails and what is at stake, and your attorney will then advise you regarding your next steps.

Speak with a Senior SEC Defense Attorney in Confidence

If you need to speak with an SEC defense attorney about a pending enforcement action, we encourage you to contact us promptly. To arrange a free and confidential risk assessment at Spodek Law Group, please call 908-643-7005 or tell us how we can reach you online today.

Further Information About SEC Defense

• SEC Investigation Defense Lawyer
• SEC Investigations and the Investment Advisers Act of 1940
• SEC Whistleblower Attorney
• What Investment Advisers Need to Know About the SEC’s 2024 Examination Priorities
• How To Handle a FINRA Investigation or Enforcement Action
• Defending Against the SEC in Insider Trading Cases
• SEC Defense Lawyers for Public Companies
• SEC Defense Lawyers for Private Companies
• SEC Attorney for Investment Fraud
• SEC Fraud Defense Attorneys
• SEC Trial Defense