Rockland County SEC Defense Attorney | Insider Trading Defense

S.E.C. / Insider Trading Defense Attorney in Rockland County

insider trading defense

Bruce Stern is one of only a handful of attorneys representing clients charged with insider trading to beat the S.E.C. without litigation, financial settlement or the client ever having to communicate in any way with the S.E.C.  Get New York City, top-level representation locally.  The only attorney in Rockland County with SEC defense experience.  One of the only attorneys to ever obtain an S.E.C. letter of termination without our client engaging in a telephone interview, attending a deposition, or submitting an affidavit.  Find out how we did it.


Case Study

Client Smith receives a formal investigation letter from the United States Securities and Exchange Commission (SEC).  The letter contains a subpoena for documents and for his deposition in Washington, DC.  Client Smith resides in Westchester County. Smith is under investigation for insider trading of one, possibly two different stocks.

The SEC is not required to divulge anything about why they are conducting an investigation.  The little that can be ascertained is contained in a handful of documents that can be acquired with the proper procedural requests.  We were able to ascertain only the name of the company whose stock Smith made a large profit on in a short amount of time.  The company’s stock rose dramatically when i was bought out by another company.  The SEC is automatically notified when a trade meets certain parameters, all of which were met by Smith’s trade.

Smith makes dozens of trades a year, and has done so for more than 20 years.  He could not provide any clear rationale for the stocks he bought and sold.  After extensive interviews with Smith, we were able to ascertain how he had come to trade this particular stock.  After extensive research, we discovered that there was compelling public news about this stock and the big-name financiers and corporate raiders involved in both companies in question.  This alone failed to persuade the SEC.

Because Smith could not explain his methods of stock-picking, a thorough analysis of his trades going back 10 years was able to reveal a clear and consistent trading pattern.  When compared to the market trends, as well as the individual market sectors, we were able to present the “how” of his trade picks, and the pattern he followed every time he sold and subsequently bought the next stock.  All of this data was distilled down to an Excel spreadsheet, and all of the thousands of pages and the analysis were forwarded to the SEC.

The difficult issue here, despite proving Smith’s innocence, what his reticence to talk to the SEC attorneys under any circumstances.  Thus, our job was to present such an overwhelming paper trail in his favor, that the SEC attorneys would agree to close their investigation without ever deposing Smith- a very tall order.

Agencies such as the SEC have significant powers, supported by the federal courts, to investigate matters within their jurisdiction.  Even after the SEC attorneys agreed to move the deposition to its New York City offices, Smith still refused to appear.  There is only the narrowest of exceptions under which the SEC will be prevented by a court from enforcing its subpoena power.

The end result here, was a very rare win for Smith.  The SEC, based on the documentary evidence discovered, assembled, analyzed and presented to the SEC convinced the SEC attorneys that there was no wrong-doing and the investigation was terminated.

If You Received A Letter from the SEC

Contact an attorney immediately.  Time and cooperation are critical to a quick and effective resolution, whatever the SEC is investigating.  Actions such as disposing of documents after notice of the investigation has been received is a separate, and often more serious offense than the charge itself.  When the SEC contacts you, contact Stern Law Offices immediately.  We know how to beat the SEC.