1. Which Authority Is Contacting You, and What Is It Requesting?
The document shows who is asking, what they want, and when a response is due. Check whether it requests voluntary help, demands records or testimony, or starts a case.
Separate Government Demands from FINRA Matters
The Securities and Exchange Commission (SEC) brings civil enforcement cases. Federal prosecutors bring criminal charges. The New York Attorney General (NYAG) has separate powers under the Martin Act.
| Contact or Document | What It May Involve | First Issue to Check |
|---|---|---|
| SEC subpoena | Records or sworn testimony | Scope, deadline, and objections |
| NYAG subpoena | A state securities investigation | Statutory authority and requested material |
| Federal grand jury subpoena | Evidence for a criminal investigation | Recipient, required response, and privileges |
| FINRA Rule 8210 request | An industry investigation | FINRA’s authority over the recipient |
| FINRA customer claim | An investor’s demand for relief | Arbitration requirements and answer deadline |
SEC subpoena
- What It May InvolveRecords or sworn testimony
- First Issue to CheckScope, deadline, and objections
NYAG subpoena
- What It May InvolveA state securities investigation
- First Issue to CheckStatutory authority and requested material
Federal grand jury subpoena
- What It May InvolveEvidence for a criminal investigation
- First Issue to CheckRecipient, required response, and privileges
FINRA Rule 8210 request
- What It May InvolveAn industry investigation
- First Issue to CheckFINRA’s authority over the recipient
FINRA customer claim
- What It May InvolveAn investor’s demand for relief
- First Issue to CheckArbitration requirements and answer deadline
FINRA is a self-regulatory organization, not a criminal prosecutor. Rule 8210 applies to firms and people under its authority. Failing to comply can lead to disciplinary action.
Check the Deadline and Submission Instructions
Subpoena deadlines depend on the demand and applicable rules. A request for more time does not itself extend the deadline.
A Wells notice concerns a possible SEC enforcement recommendation. The SEC’s 2026 Enforcement Manual ordinarily allows four weeks for a Wells submission explaining why an action should not proceed. That period is not a general subpoena deadline.
In FINRA customer arbitration, Rule 12303 generally requires an answer and signed Submission Agreement within 45 days after receiving the claim. The response must be filed with FINRA and served on the other parties as required by its rules.
2. What Conduct and Personal Role Are under Review?
A defense assessment identifies the alleged act and the person’s role. A securities fraud case may concern misleading sales statements, false disclosures, market manipulation, or insider trading. The legal test depends on the claim or charge.
Match the Allegation to the Law
Federal Rule 10b-5 addresses fraud connected with a securities purchase or sale. Its reach includes specified uses of interstate commerce, the mails, or national securities exchanges. An attorney must also assess whether the investment qualifies as a security.
New York’s Martin Act addresses covered activity within or from the state. GBL §352 authorizes investigations; §353 provides civil remedies. Section 352-c separately defines prohibited conduct and criminal offenses.
The required state of mind differs by claim. Section 352-c’s felony provisions require specified intentional conduct and additional facts. Prosecutors must prove the charged offense beyond a reasonable doubt.
For a Rule 10b-5 misstatement claim, key issues include whether the statement mattered to a reasonable investor and the required knowledge or recklessness. Private investor claims also require elements such as reliance and loss causation that SEC enforcement does not.
Identify Who Said, Approved, or Knew What
A job title alone does not explain someone’s conduct. A New York securities fraud lawyer examines the person’s work and knowledge at the time.
Useful questions include:
- Who wrote or approved the disputed statement?
- What information did that person receive before it was sent?
- Who controlled the account or directed the trade?
- What corrections, objections, or disclosures appear in the records?
For offering allegations, compare the version investors received with dated approval records. For trading allegations, examine order times, account access, and communications.
3. How Can Parallel Proceedings Affect the Defense?
The same conduct can lead to regulatory, criminal, and private proceedings. A statement made in one setting may matter in another. Planning for criminal securities and financial fraud therefore requires reviewing related civil and regulatory demands.
Review Statements and Settlement Terms Together
Before an interview or written response, an attorney reviews the request, rights to withhold protected information, and possible use of statements elsewhere. An informal meeting is not necessarily confidential.
A private settlement with an investor does not automatically end an SEC inquiry or criminal investigation. Review which parties and claims an agreement resolves, along with any admissions and reporting duties.
Clarify Whom the Company Lawyer Represents
The company’s lawyer does not automatically represent its employees. Representing both requires reviewing conflicts of interest. Separate advice may be needed when accounts of events or proposed cooperation differ.
Before an internal interview, clarify:
- Who is the lawyer’s client?
- Who controls any company attorney-client privilege?
- Could the company disclose the interview’s substance to authorities?
4. What Does a Securities Fraud Case Review Cover?
A case review connects the legal demand with the underlying facts. It should identify immediate duties, disputed conduct, available defenses, and missing records.
Set the Scope before Preparing a Response
Bring the original notice, attachments, delivery details, and earlier correspondence. Identify relevant accounts, devices, employees, and prior submissions. An attorney can assess objections, interviews, and required filings.
Confirm any named court and case number. Federal cases may arise in any of New York’s four federal districts when jurisdiction and venue requirements are met. Martin Act civil enforcement actions may proceed in New York Supreme Court, a state trial court.
5. Practical Pitfalls during an Investigation
Incomplete records and rushed explanations can create additional disputes. In white collar investigations, record preservation should begin promptly. Staff should keep original material while attorneys plan collection and review.
Preserve Originals and Explain Gaps Accurately
Keep records in their original form and document any gaps. Practical steps include:
- Suspend relevant automatic deletion, including disappearing messages.
- Keep original files, attachments, and complete message threads.
- Do not rewrite records or coordinate witnesses’ recollections.
- Identify missing material and collection limits accurately.
Sending an existing business record to a lawyer does not automatically make it privileged. An attorney should distinguish protected legal communications from business records that must be produced.
6. Discuss the Notice, Deadline, and Defense Scope
Consult a New York securities fraud lawyer about the document received, your role, and any related proceedings. The consultation can address representation, record preservation, response options, and the work needed before testimony or filing.
10 Nov, 2026
