How does an SEC civil case become a criminal case?
Dallas criminal defense attorney, John Teakell, discusses how a non-criminal SEC case can have criminal ramifications.
Email: [email protected]
Phone: (214) 523-9076
Often times US Securities and Exchange Commission cases which are civil enforcement actions do become criminal investigations and criminal incitements through the US attorney’s offices because the basis of the securities exchange commission actions are, even though they are civil in nature, obtaining cease and desist orders, orders freezing assets, things of that nature, they are based upon allegations of misrepresentations of fact to obtain monies or some sort of fraudulent scheme even though their burden of proof on an SEC civil enforcement action is going to be for a civil case a lesser burden of proof. Often if it’s egregious enough or the US attorney thinks it’s egregious enough and the dollar amounts are significant enough for a federal prosecution, the US attorney and it’s agents will take the depositions, the statements, the evidence obtained in the civil enforcement action, build on that, add to what they learn, find through the grand jury and go forward with an incitement based on an the misrepresentations and often times the chargers are or can be securities fraud, wire fraud, mail fraud, bank fraud.