Regulatory Investigation Response Attorneys
Responding to SEC subpoenas and Wells notices, FTC civil investigative demands, FINRA Rule 8210 requests, and state regulators, with the obstruction and false statement statutes in view.
A regulatory inquiry arrives as a document request, a subpoena, a civil investigative demand, or a request for testimony, and each comes with its own statutory authority and its own consequences for non-compliance. The SEC investigates under section 21 of the Exchange Act, the FTC issues civil investigative demands under section 20 of the FTC Act, and FINRA requires information and testimony from its members and associated persons under Rule 8210. How a company responds at this stage shapes whether the inquiry closes, settles, or becomes an enforcement action.
Industria Business Lawyers represents companies and individuals in regulatory investigations and in the negotiations that follow. Every provision cited on this page was read from the United States Code, the Code of Federal Regulations, or the FINRA Manual. A consultation is free and confidential.
The Authority Behind Each Request
What each regulator may require, and the statutes that govern the response.
SEC Investigative Authority
Section 21(a)(1) of the Exchange Act, 15 U.S.C. 78u(a)(1), permits the SEC, in its discretion, to make such investigations as it deems necessary to determine whether any person has violated, is violating, or is about to violate the Act or its rules. Section 21(b), 15 U.S.C. 78u(b), empowers any member or designated officer to administer oaths, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, or other records the Commission deems relevant or material to the inquiry.
The Wells Process
SEC Rule 202.5(c), 17 CFR 202.5(c), provides that persons involved in preliminary or formal investigations may, on their own initiative, submit a written statement to the Commission setting forth their interests and position, and that upon request the staff, in its discretion, may advise such persons of the general nature of the investigation, including the indicated violations, and the time available for a statement before a staff recommendation to commence an action.
FTC Civil Investigative Demands
Section 20 of the FTC Act, 15 U.S.C. 57b-1(c)(1), provides that whenever the Commission has reason to believe that any person may be in possession, custody, or control of documentary material or tangible things, or may have information, relevant to unfair or deceptive acts or practices in or affecting commerce or to antitrust violations, the Commission may, before instituting proceedings, issue and serve a civil investigative demand requiring production, written reports or answers, or oral testimony.
FINRA Rule 8210
FINRA Rule 8210(a) provides that, for the purpose of an investigation, complaint, examination, or proceeding, an Adjudicator or FINRA staff shall have the right to require a member, person associated with a member, or any other person subject to FINRA’s jurisdiction to provide information orally, in writing, or electronically and to testify under oath or affirmation, and to inspect and copy the member’s or person’s books, records, and accounts with respect to any matter involved.
Obstruction of Agency Proceedings
18 U.S.C. 1505 makes it a crime to corruptly, or by threats or force, or by any threatening letter or communication, influence, obstruct, or impede, or endeavor to influence, obstruct, or impede, the due and proper administration of the law under which any pending proceeding is being had before any department or agency of the United States.
False Statements
18 U.S.C. 1001(a) makes it a crime, in any matter within the jurisdiction of the executive, legislative, or judicial branch, knowingly and willfully to falsify, conceal, or cover up by any trick, scheme, or device a material fact, to make any materially false, fictitious, or fraudulent statement or representation, or to make or use any false writing or document knowing it to contain a materially false statement.
How a Regulatory Response Is Run
The response is a negotiation from the first call, conducted inside rules that carry their own penalties.
Understand the posture. An informal request, a formal order of investigation with subpoena authority under 15 U.S.C. 78u(b), a civil investigative demand under 15 U.S.C. 57b-1, and a Rule 8210 request each carry different obligations and different consequences for non-compliance. The first step is to establish which one has been received and what the regulator is looking at.
Preserve and control. A litigation hold issues immediately. Under 18 U.S.C. 1505, corruptly obstructing or impeding a pending federal agency proceeding, or doing so by threats or force, is a crime, and under 18 U.S.C. 1001 knowingly and willfully making a materially false statement to a federal investigator is a separate offense. Communications with the regulator run through counsel.
Negotiate scope. Requests are narrowed by custodian, date range, and subject matter, and production schedules are agreed in writing. Privilege is asserted and logged.
Testimony. Witnesses are prepared for testimony under 15 U.S.C. 78u(b) or Rule 8210 with the specific topics in view, and with the rights available to them explained in advance.
The Wells stage. Where the SEC staff notifies a person that it has made a preliminary determination to recommend an enforcement action, 17 CFR 202.5(c) permits a written statement of the person’s position. A Wells submission is the last opportunity to address the Commission before a decision to sue, and it is written with the risk that it may be used in the proceeding.
Resolution. Investigations end in closure, settlement, or litigation. The firm evaluates settlement terms against the likely outcome of litigation and the collateral consequences for licenses, registrations, and other proceedings.
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They consistently deliver thorough and timely work. We wholeheartedly recommend IBL.”
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I would recommend working with Aaron and team.”
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As a result, we’ve continued to rely on them as our go-to legal counsel for ongoing corporate matters.”
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The attorneys were incredibly responsive, guiding me through every step of the process with clarity and professionalism.
They took the time to address all my questions and concerns, ensuring that I felt confident in each decision we made. Their attention to detail and thoroughness were evident in the documents they prepared, which gave me peace of mind. What stood out most was their commitment to my vision. They not only provided legal advice but also offered valuable insights into the industry, helping me navigate potential challenges and seize opportunities.
Overall, working with IBL was a fantastic experience. They made a complex process manageable and stress-free. Thank you for your outstanding support.”
Client testimonials describe individual experiences. You may not obtain the same or similar results.
How We Handle a Regulatory Inquiry
The request, subpoena, or demand read for its authority, scope, deadlines, and the regulator’s apparent theory.
Litigation hold issued and communications with the regulator routed through counsel.
Custodians, date ranges, and topics narrowed, with the agreement confirmed in writing.
Privileged review of the documents and interviews so the company knows the facts before the regulator does.
Organized production with a privilege log, and witness preparation for testimony.
Presentations and, where the SEC staff recommends action, a Wells submission under 17 CFR 202.5(c).
Closure, negotiated settlement, or defense in litigation.
FAQ
01 • Companies and Individuals We received an SEC subpoena. What does it mean?
It means the Commission has authorized an investigation under 15 U.S.C. 78u and a designated officer has used the subpoena power in section 78u(b). It does not mean the Commission has concluded that anyone violated the law.
02 • Companies and Individuals What is a Wells notice?
Notice from the SEC staff that it has made a preliminary determination to recommend an enforcement action. 17 CFR 202.5(c) permits the person to submit a written statement of its position before the recommendation goes to the Commission.
03 • Companies and Individuals Do we have to respond to a FINRA Rule 8210 request?
Rule 8210(a) gives FINRA staff the right to require members, associated persons, and others subject to its jurisdiction to provide information and testimony and to inspect books and records. A request is answered through counsel within the time set.
04 • Companies and Individuals What is a civil investigative demand?
A demand the FTC may issue under 15 U.S.C. 57b-1 before instituting proceedings, requiring documents, written answers, or oral testimony from a person it believes has information relevant to unfair or deceptive practices or antitrust violations.
05 • Companies and Individuals Can we be charged for how we respond?
Yes. 18 U.S.C. 1505 prohibits corruptly obstructing a pending federal agency proceeding, and 18 U.S.C. 1001 prohibits knowingly and willfully making materially false statements to federal investigators. The response is structured to avoid either.
Companies and individuals facing an inquiry. Call (202) 860-1210 or describe the request through the form. Free and confidential consultation.
This page provides general information about responding to government investigations and regulatory inquiries under federal law and FINRA rules and does not constitute legal advice. Reading it does not create an attorney-client relationship with Industria Business Lawyers. Whether a claim, defense, or obligation exists depends on the facts and the law in force. Provisions cited were read on September 24, 2026 from the United States Code, the Code of Federal Regulations, and the FINRA Manual at finra.org.