When a Fortune 500 company receives an SEC subpoena, they know what to do. When a major bank is contacted by FINRA or the DOJ, they move quickly—and strategically. They don't just call "a lawyer." They retain people who live and breathe securities enforcement—attorneys who have either worked inside the SEC or DOJ or trained at elite law firms defending clients in high-stakes regulatory matters. But I see something different play out for smaller companies, startups, founders, and even mid-size financial firms. When they get that same letter or subpoena, they panic. They call the first lawyer they can think of—sometimes a family friend, a generalist litigator, or someone recommended by their insurance panel. And while those lawyers may be talented in other areas, they often have little or no experience with securities enforcement defense.
That decision can be the difference between a clean resolution and a career-ending mistake.
Choosing the Right Lawyer for an SEC Enforcement Matter
If you're facing regulatory scrutiny, selecting specialized legal counsel isn't optional—it's essential. Here's a breakdown of what you should consider when choosing an SEC or FINRA enforcement attorney:
1. Specialization in Securities Defense and SEC Enforcement
You need someone who has done this before—repeatedly. Look for lawyers who:
- Specialize in securities defense, regulatory investigations, and enforcement actions.
- Have a track record of representing clients in SEC, FINRA, DOJ, and PCAOB investigations.
- Ideally have prior experience inside these agencies (e.g., former SEC enforcement division staff or federal prosecutors).
2. Set Up Initial Consultations and Ask Targeted Questions
Treat this like hiring a heart surgeon. Ask:
- How many SEC subpoenas have you handled?
- What was your last case involving insider trading / unregistered offerings / crypto fraud / Reg D violations?
- What is your general approach to Wells Notices or parallel investigations with DOJ?
- Have you worked with clients in my industry?
- Can you explain how privilege, cooperation credit, or proffers work?
- What are your rates and fee arrangements? Will insurance cover any of it?
Also ask about practical experience: Have they ever been an issuer of securities? Do they understand startup fundraising dynamics? That kind of perspective can be critical for founders and entrepreneurs.
3. Trust, Communication, and Comfort Matter More Than You Think
This is going to be a journey. There will be uncomfortable conversations, tough decisions, and high-stress moments. You must:
- Feel comfortable sharing sensitive facts.
- Trust that your attorney understands the stakes—and isn't learning on your dime.
- Know that your questions will be answered with clarity and empathy.
Look for someone who communicates clearly, demonstrates care, and shows a passion for the work. The best securities lawyers are not just smart: they're experienced, surgical, strategic, and deeply attuned to nuance.
A Word About Insurance Counsel
Your D&O or E&O policy may recommend panel counsel. That's fine—but ask yourself: Are they the best for this? Some are excellent. Others are there because they're cheaper. You can often request alternative counsel if the stakes are high. Don't be afraid to push for the representation you deserve.
This Isn't Just a Legal Matter—It's a Human One
Securities investigations aren't general legal matters. They're often reputational, psychological, and existential. They can impact your company, your family, your mental health, your entire future. The stakes are too high to trust your fate to someone who "probably can figure it out."
I'm not saying you have to call me. I'm saying: Call someone who knows this world inside and out. Talk to two or three lawyers. Compare. Ask questions. And make sure the person representing you is equipped not just with credentials—but with clarity.
Bonus: Quick Checklist for Vetting SEC Enforcement Counsel
- Specializes in SEC/FINRA/DOJ enforcement
- Prior experience inside agencies or at major law firms
- Can provide specific case examples like yours
- Clear communication and empathy
- Understands your business and industry
- Approved (or approvable) by your insurer (if applicable)
- Fair fee structure
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
