Jim Eccleston: SEC’s Wells Notice is an 80/20 Bet | Investors

Posted on October 28th, 2013 at 4:34 PM

From the Desk of Jim Eccleston at Eccleston Law:   

 

            Approximately 80% of people who were warned that they might be sued by U.S. regulators for allegedly violating securities law, did in fact face these charges.  The SEC’s powerful enforcement tool, a Wells Notice, alerts individuals and companies that the agency may take enforcement action. 

            Pursuant to a Wells Notice, the SEC must decide whether to proceed with enforcement action within 180 days of issuing the notice, unless there is a formal extension of the deadline.  The notices disclose the specific charges that enforcement is considering to recommend to the SEC’s commissioners for approval.  To respond, companies and individuals can file Wells a “submission” detailing why they believe the SEC should not file its case and/or should reduce the penalties that it seeks. 

 

The attorneys of Eccleston Law represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

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