SEC Seeks Court Order Compelling Document Production
The SEC is seeking a federal court order to compel the target of an investigation to comply with subpoenas. The SEC is seeking documents concerning a firm that offered access to pre-IPO shares. The target has ignored two subpoena requests. Now, the SEC is seeking a court order, and the court has issued an Order to Show Cause where the target can object.
OUR TAKE: We are often asked what happens if you ignore an SEC document request. This is what happens: the SEC issues a subpoena; if you ignore the subpoena, the SEC gets a court order; if you ignore the court order, you can go to jail. And, during this period, you have probably irritated the SEC and further raised its suspicions. The chance you can actually win an Order to Show Cause hearing is very small.