SEC enforcement matters typically begin with informal inquiries or formal orders of investigation, through which the Division of Enforcement exercises compulsory process to gather evidence of potential securities law violations. Where staff conclude that enforcement action is warranted, a Wells notice provides the subject an opportunity to submit a response before the Commission authorizes proceedings. The resulting action may take the form of an administrative proceeding before an SEC administrative law judge or a civil injunctive action filed in federal district court — each with distinct procedural rules, evidentiary standards, and remedial frameworks.

Private securities litigation frequently runs in parallel with SEC enforcement proceedings, creating strategic interdependencies between the regulatory and civil tracks. Decisions regarding cooperation with the SEC, the assertion of privilege in regulatory proceedings, and the timing of settlement negotiations in private actions must be coordinated to avoid prejudicing the client’s position in either forum. The remedial exposure in enforcement matters — including disgorgement, civil penalties, officer-and-director bars, and injunctive relief — carries consequences that extend well beyond monetary liability.

• Defense of individuals and entities in SEC formal investigations and Wells notice proceedings
• Administrative proceedings before SEC administrative law judges, including cease-and-desist and civil penalty actions
• Civil injunctive actions filed by the SEC in federal district court
• Private securities fraud litigation under Section 10(b), Rule 10b-5, and Sections 11 and 12 of the Securities Act
• Parallel management of SEC enforcement, DOJ criminal referrals, and private civil claims arising from the same underlying conduct