Law360’s SEC Survival Guide: The Initial Inquiry


Steven Scholes said that the “best way” for corporations facing an SEC investigation to keep staff from filing an enforcement action is to see if agency concerns can be answered by more information. However, Mr. Scholes added, “There are times when you really want to sit back and let the SEC conduct their investigation and deal with the facts as they develop them on the record.” Elizabeth Herrington suggested that defense counsel should structure an in-house investigation strategically to clearly preserve attorney-client privilege, which she said requires counsel to be “cognizant of independence. They need to be giving advice to clients, rather than making as if they’re part of the legal team.”