Securities Enforcement and Regulatory Defense

Securities Enforcement and Regulatory Defense

This is an era of heightened scrutiny and regulatory enforcement in the securities industry, as regulators respond not only to well-documented and at times unfathomable industry and financial abuses, but to the hue and cry of Congress, the press and the public unwilling to tolerate even marginal transgressions. If you work in this industry, you don’t have to be a “bad guy” to draw the attention or even the wrath of securities regulators.

Hutner Klarish has for decades been representing clients investigated and sued by the Securities and Exchange Commission (SEC), FINRA (formerly NASD and the regulatory arm of the New York Stock Exchange), as well as various state regulators. This practice area requires industry specific knowledge and finesse, as regulators are a different breed and the process involves a playing field that can be significantly tilted in their favor. No matter should be taken lightly, and having experienced counsel in your corner is critical to a successful outcome. We pride ourselves on understanding this process, and structuring a defense to an investigation or complaint that aims to prevent disciplinary action or achieve an optimal result under the circumstances.

We have represented clients in virtually every kind of matter in this area, from month-long SEC administrative proceedings, to extended FINRA hearings, to administrative appeals to the actual Commissioners of the SEC and to FINRA’s National Adjudicatory Council (NAC). We also regularly:

  • Represent clients required to appear at “on-the-record” interviews and depositions
  • Advise and assist in responding to document subpoenas from the SEC, 8210 requests from FINRA, and orders from state regulators.
  • Advise clients who have received and responded to a “Wells Notice” indicating the regulator’s intention to commence an enforcement action
  • Negotiate settlements before and after disciplinary charges are brought
  • We have also successfully prosecuted a Form MC-400 application which enabled a client to continue working in the securities industry despite being subject to a “statutory disqualification.”

If you hear from a securities regulator, be proactive: bite the bullet and call a lawyer. Be sure it is one experienced in this area.