SEC Investigations – FAQ

SEC Investigations Frequently Asked Quesetions

I have received a subpoena from the SEC what do I do? 

It is important to understand that when you receive a subpoena from the SEC it is most definitely not the beginning of an investigation, but it is the beginning of your knowledge that there is an investigation.  If you have received a subpoena from the SEC, your first and immediate step is to contact an attorney who can help guide you through the process and get the best resolution possible.  

What is the process? 

First, the majority of the Securities and Exchange Commission must issue what is called a formal order of investigation. This is a formal order within the SEC that gives authority to start issuing subpoeanas, and the like. It is important to note that without that order, the SEC’s enforcement attorneys can request your cooperation, but they cannot require it.

The distinction is very important.  Before there is a formal order SEC staff can still conduct an investigation but it’s done in a more informal way. It is very similar to a federal agent coming by your office and just “asking a few questions”. They may imply it’s informal and no big deal – but it is. Even if you are contacted this way, it is imperative to understand that these conversations are not casual.   Everything you say and do can and will be held against you.   And it can be the information that is used to procure the formal order. 

What is a subpoena duces tecum? 

A subpoena duces tecum compels the production of documents. It is a legal order requiring a person to produce documents or tangible evidence for use at a hearing or trial. The term “duces tecum” comes from the Latin phrase “you shall bring with you.”. It includes correspondence, emails, contracts, financial records, trading logs, and communications on all types of platforms that include WhatsApp, Signal, Telegram etc per the revised 2026 Enforcement Manual. The subpoena will specify a deadline and an address for production. An experienced attorney may be able to secure a delay in this deadline so that there is adequate time to comply.

What is a preservation obligation?

There is a duty to preserve once an investigation has begun. These obligations now extend to encrypted communications on personal devices.  The preservation obligation attaches at the moment of service, and in certain cases before: the 2026 Manual directs enforcement staff to issue preservation letters early in an investigation, which means the duty to preserve may predate a subpoena by weeks.

What is a subpoena ad testificandum? 

A subpoena ad testificandum compels you to appear at a designated time and place to give sworn testimony.

Securing counsel early on is key.  Contact us so we can help.  Complying with SEC subpoenas is complicated and time consuming. Even after complying, the investigation stage is a long process. It is important to have qualified counsel throughout.  Remember all of the aspects of the SEC investigation can and usually does run parallel to a criminal investigation by the DOJ.