Representing Witnesses in SEC (Securities and Exchange Commission) Formal Investigations (From The Litigation Manual, P 1154-1162, 1989, John G Koeltl, ed. -- See NCJ-117323)

• NCJ Number: 117370
• Author(s): R H Winter
• Date Published: 1989
• Length: 9 pages
• Sale Source: American Bar Assoc
• Publication Type: Training (Handbook/Manual)
• Language: English
• Country: United States of America

Annotation

After describing procedures in formal Securities and Exchange Commission (SEC) investigations, this article guides attorneys in how to represent their clients in such proceedings.

Abstract

Representing a witness in a formal SEC investigative proceeding is similar to representing a deponent in a deposition under the Federal Rules of Civil Procedures, with some significant differences. The proceedings are governed by special Rules Relating to Investigations. The Federal Rules of Civil Procedure do not apply. Similarly, except where specifically provided otherwise, the Commission's General Rules of Practice governing adjudicative or rulemaking proceedings do not apply. A formal investigation begins with the Commission's entry of an order of investigation directing that the investigation be held and authorizing designated individuals in the appropriate division or regional offices to take testimony. Even in instances of an informal investigation, counsel may be contacted by the staff and requested to present his/her client for examination on short notice. In view of the severe civil and criminal sanctions that may result from an investigation, counsel should not readily agree to a date that does not permit adequate preparation. This article discusses some of the problems in representing a client in such a proceeding, whether separate representation is necessary or appropriate when counsel represents more than one entity in the proceeding, overall strategy, counsel's role, and questioning the witness after the examination.