What to Do When the Sheriff Comes Calling—Nine Steps in Responding to SEC Enforcement Calls

• Posted by Geoffrey G. Gussis on July 11th, 2006


• Filed in Risk Management & Compliance

Edward Gartenberg of Thelen Reid & Preist LLP has put together a concise list of first steps to consider when the SEC notifies your company that it is under investigation:

"SEC enforcement activity with respect to hedge funds increased significantly in 2005 and is almost certain to increase again in 2006. The outcome of an SEC investigation may involve disgorgement of profits, civil monetary penalties, suspensions or bars from the securities industry, or even criminal prosecution. In the best interest of the fund and its managers, an appropriate pro-active response to an SEC inquiry is often the best way to react to a call from the Enforcement Division. This article addresses the first steps to take, "when the sheriff comes calling.""

Link: What to Do When the Sheriff
Comes Calling—Nine Steps in Responding to SEC Enforcement Calls from Mondaq (free registration required).