Where the power comes from
Enforcement staff can issue subpoenas after the Commission has authorized a formal investigation through what is called a formal order. That order describes the general subject of the inquiry, and a witness may ask to see it, although the agency decides how much to share. A subpoena can demand documents, sworn testimony, or both, from companies and individuals whether or not they are suspected of anything. Without a formal order, a staff request for documents is voluntary, even when it is phrased firmly. Telling a voluntary request apart from a subpoena is the first thing to establish.
What happens if a subpoena is ignored
The SEC cannot jail or fine someone on its own for ignoring a subpoena. Instead, it can ask a federal district court to order compliance, and a person who then disobeys the court's order risks contempt. Courts tend to enforce SEC subpoenas when the investigation has a legitimate purpose and the demand is relevant, so outright refusal is rarely a sound strategy. Scope, timing, and format, by contrast, are routinely negotiated with the staff, and a careful conversation can narrow a sweeping request into something manageable. Privileged material can be withheld and logged, and sensitive business information can be produced with a request for confidential treatment.
Testimony and the privilege against self-incrimination
If the subpoena calls for testimony, you may bring a lawyer, and the testimony is taken under oath and transcribed. Individuals can invoke the Fifth Amendment, but in a civil matter a factfinder can sometimes draw a negative inference from that choice, and the SEC can share information with criminal authorities. Whether to testify, assert the privilege, or seek a postponement is a decision to make only after reviewing the documents and understanding where you stand in the investigation. When you bring us a subpoena, we read it with any cover letter, confirm the formal order behind it, and map out the dates you need to meet.
