Who is asking, and why it matters
Several bodies can be involved, and their powers differ. The Securities and Exchange Commission brings civil enforcement actions only; criminal charges come from the Department of Justice, typically through a U.S. Attorney's Office working with the FBI. Market surveillance by FINRA and the exchanges frequently spots unusual trading first and refers it onward, and a broker may ask its customers about specific trades as part of that process. The SEC and prosecutors can share information, so a civil inquiry does not mean criminal exposure is off the table. Knowing which agency sent the request, and whether you are being treated as a witness or something more, shapes every response that follows.
What to hold onto, and what to avoid
Preserve trading records, brokerage statements, phone and messaging history, calendars, and any communications with people at the company whose stock is at issue. Do not delete messaging apps or clean up chats, and do not ask friends or family what they remember, because conversations about the investigation with possible witnesses can be viewed as interference. Resist the urge to call the agency and explain. Informal conversations are often the source of later problems, and knowingly false statements to federal investigators are a separate crime. If you hold a securities license or work at a regulated firm, your employer's policies may impose reporting duties of their own, and counsel should help you handle them.
Decisions in the early conversations
We start by reading exactly what was requested and by whom, then reconstruct the timeline of the trades against what information was available and when. Insider trading cases often turn on where the information came from and whether there was a duty not to trade on it, so the relationships and sources around each trade matter a great deal. Whether to give testimony, assert the Fifth Amendment, produce documents voluntarily, or attempt a proffer is a strategic choice with consequences in both civil and criminal settings. We go through those options with you before anyone speaks to the government.
