What is a Securities and Exchange Commission (SEC) investigation?

A Securities and Exchange Commission (SEC) investigation is a type of legal action the SEC might take when investigating possible violations of investment fraud law in North Carolina or other states. It is the SEC’s job to protect investors from fraud and illegal activities by enforcing federal securities laws. When the SEC begins an investigation, the agency will examine a company’s books and records, conduct interviews with the company’s personnel, and analyze the trading activity of the company’s stocks or other investment vehicles. The SEC may issue subpoenas to compel production of documents, or take other steps to gain access to information. The SEC’s staff will review the evidence and prepare a report outlining any potential violations. If the report finds potential violations, the SEC may take legal action, such as bringing a civil enforcement action or initiating criminal proceedings. The SEC also investigates individuals who may have violated investment fraud law in North Carolina or other states. Individuals may be subject to fines or jail time, depending on the severity of their violations. The SEC’s ultimate goal is to protect investors from fraud and other illegal activities. A successful SEC investigation can result in the recovery of funds, the imposition of fines and penalties, and the institution of reforms to help prevent future violations.

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What is a Securities and Exchange Commission (SEC) investigation?

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