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

A Securities and Exchange Commission (SEC) investigation is an examination of a person or entity suspected of violating securities laws in Washington. The purpose of the investigation is to uncover evidence of wrongdoing, determine civil or criminal liability, and prosecute offenders. The SEC has a large investigative arm that is responsible for conducting investigations. When the Commission suspects a violation of securities laws or regulations, it can investigate the matter and initiate an enforcement action or prosecution. In the enforcement process, the SEC will issue subpoenas to obtain documents, interview witnesses, and assemble evidence to be used in court or during a settlement negotiation. The Commission has broad authority to investigate any violation of securities law, including insider trading, market manipulation, false and misleading statements, and other fraudulent activities. It also has investigative powers over accountants, brokers, dealers, and investment advisers. The SEC also has the ability to refer matters to other agencies for further investigation. For example, a case may be referred to the Department of Justice for criminal prosecution. Additionally, the Commission can bring civil actions in federal court against individuals or entities that have violated securities laws. The SEC is an important part of the regulatory landscape in Washington and has the authority to take enforcement action against those who violate securities laws. Its investigations are an important tool for identifying and prosecuting wrongdoers.

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

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