Well this doesn’t happen every day – or does it? The SEC finds itself being investigated for improper financial holdings. According to a November 2013 Reuters post, federal prosecutors and the office of the inspector general of the SEC contacted employees in the SEC’s New York office about trading in companies that are under SEC investigation. This is a direct violation of internal SEC rules. While the report indicates that it does not appear to be a widespread issue, it is another black eye for the SEC that is still marred by the 2009 allegations regarding insider trading by SEC employees. Stay tuned to see how this plays out.

If you are company that is under investigation by the SEC, or an officer or director of a company that is under investigation by the SEC, and want to obtain a better understanding of the investigative process, please feel free to contact Douglas Leavitt at Danziger Shapiro & Leavitt. Mr. Leavitt can walk you through the investigative framework and assist you in navigating a complicated and difficult situation.

This entry is presented for informational purposes only and is not intended to constitute legal advice.

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