What To Do When The SEC Calls
by Richard Ramirez
The Securities Exchange Commission (SEC) is responsible for monitoring the investment market for signs of fraudulent or unlawful activity. Receiving a phone call from the SEC can be frightening for finance professionals who trade in stock or work for public companies.
A securities attorney can help you navigate any phone call that you receive from the SEC in order to avoid any self-incrimination.
Collect Information to Call Back
You should never avoid a phone call from the SEC. If you are being contacted by an investigator working for the SEC, chances are that the SEC believes you have knowledge related to unlawful trade and investment behaviors.
The caller will not stop trying to contact you until you have been reached. If the SEC can't talk to you by phone, you could receive a personal visit from an SEC investigator. Instead of ignoring SEC phone calls, answer and collect contact information for the caller.
Inform the caller that you need your attorney present during all communication with the SEC, and that you will contact him or her on a specified date in the future.
Uncover the Reason for the Call
It's important that you are prepared when you speak to an SEC official. Your attorney can contact the SEC on your behalf to collect information on the reason behind the call you received. Access to this information allows you to work with your attorney to identify any potential liabilities that may get you into trouble with the SEC.
You can prepare some responses to the questions you will likely be asked by the SEC investigator. An attorney can prevent you from being blindsided and offering up information that might inadvertently get you into trouble when you are communicating with the SEC.
Answer Questions You Feel Comfortable With
When the time to return an SEC investigator's call arrives, the call should be placed from your attorney's office with your legal team on speaker. You are obligated to respond fully and truthfully in your communications with the SEC. Failure to do so could result in imprisonment or hefty fines.
If you don't feel comfortable answering some of the questions posed by the investigator, your attorney will be able to help you invoke your Fifth Amendment right not to testify.
Don't let a phone call from the SEC cause you to panic. Remain calm, and contact a securities attorney, like those at Carter West Law firm, to help you respond.
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About Me
Hello, I'm Phillip Kerr and I just love the legal profession and courtroom drama. Have you ever watched judge shows on TV? I know that these shows are not an accurate representation of the courtroom, but there is something you may have noticed. Some individuals come into the courtroom well-dressed, articulate, respectful and with the knowledge and documents necessary to support a case, while others come unprepared, slovenly dressed and appear as if they do not have a care in the world. How you present yourself and the knowledge that you have of the law will have an impact on how you are treated, even if you have legal representation. This blog is designed to assist those who are going to trial in doing just that.
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