New York, NY securities attorney Jenice L. Malecki talks about what should an individual do if they receive a subpoena from the SEC. She emphasizes that it is absolutely crucial to retain counsel immediately upon receiving an SEC subpoena. Ignoring this step is a classic case of being pennywise and pound foolish. The SEC is an extremely powerful institution, and a subpoena indicates that you may be a witness or even the target of an investigation. Having a lawyer ensures that someone is overseeing the process, protecting your rights, and managing interactions with regulators.

She notes that many clients initially attempt to speak with the SEC on their own, thinking that full disclosure will resolve the matter. In reality, this can be counterproductive. Hiring counsel signals intelligence and seriousness to regulators; it ensures they cannot take advantage of you and that all interactions follow the proper rules. A lawyer communicates with the SEC in ways a witness cannot, providing guidance on formal procedures, the scope of the investigation, and rules of testimony. Being properly prepared from the outset can prevent an SEC inquiry from escalating into a lengthy and costly process.