Securities Enforcement & Regulatory Compliance

Investigations by the SEC, DOJ, FINRA, CFTC, PCAOB, other Federal/State Civil Regulators, and Self-Regulatory Agencies

Representation in SEC informal inquiries, formal investigations, and parallel DOJ proceedings.

Overview

SEC investigations begin as informal inquiries and can escalate to formal orders compelling testimony and document production under oath. The way a company or individual responds at the informal stage shapes everything: what the SEC focuses on, whether the matter escalates, and whether Enforcement recommends an action.

Alejandro Soto spent years as a Senior Trial Attorney in the SEC's Division of Enforcement before becoming a federal prosecutor. That dual perspective, having investigated securities violations from inside the SEC and prosecuted complex financial crimes as an AUSA, is the foundation of the firm's SEC practice. He understands how the Division of Enforcement makes escalation decisions, evaluates evidence, and what arguments are most persuasive to staff and commissioners.

Our Approach

The most important decision in an SEC investigation is whether and how to cooperate with the Division of Enforcement. Cooperation can lead to declination, reduced penalty, or deferred prosecution. Non-cooperation can transform a civil enforcement matter into a criminal referral. We advise clients on cooperation strategy with full awareness of criminal implications.

Representative Experience

Securities & SEC Enforcement

$170 million real-estate Ponzi enforcement action
Represented an executive of a real estate investment fund in the SEC's enforcement action alleging that the fund, which had raised about $170 million, operated as a real-estate-debenture Ponzi scheme, isolating the client's position and resolving the Commission's claims against him in June 2022.
Parallel SEC and USAO securities investigation
Counseled a subject of parallel SEC and U.S. Attorney's Office securities investigations, negotiating a settlement of disgorgement exposure with the SEC receiver.
SEC subpoena and PCAOB examination for an accounting firm
Defended a public accounting firm in an SEC subpoena response and a PCAOB examination concerning its audit workpapers.
Parallel SEC and FINRA investigation of an investment adviser
Represents a registered investment adviser and its principal in a parallel SEC and FINRA investigation arising from a customer complaint alleging overbilling and improper gifts of approximately $5 million.
Alleged $1.2M investor-fraud SEC matter
Represented a company and its principal in an SEC enforcement matter alleging $1.2 million in investor fraud through false press releases, handling pre-filing settlement negotiations.
Technology company executive securities fraud defense
Represents the former chief executive and chief financial officer of a technology company in an SEC enforcement action alleging $30 million in securities fraud based on material misrepresentations and omissions.
Alleged $35 million Ponzi scheme defense
Represents a client and a related holding company in an SEC enforcement action alleging a $35 million securities-fraud and Ponzi scheme.
Alleged $500 million investment program SEC action
Represented an individual and a related family trust in an SEC enforcement action arising from an investment program that allegedly raised more than $500 million from investors. The trust was placed into receivership in August 2021, and the individual settled the matter in November 2022.
SEC administrative action over alleged revenue misstatements
Represents a company and its chief executive in an SEC administrative action alleging the company made false statements about its revenue to investors, as the SEC evaluates a potential federal enforcement action.
Fund accountant SEC books-and-records investigation
Represents a senior accountant at an investment-fund manager in a formal SEC books-and-records and accounting investigation.

Cryptocurrency & Digital Assets

SEC emergency crypto-fund enforcement action
Represents the co-founder of a cryptocurrency fund in an SEC emergency action alleging a Ponzi scheme the agency framed at roughly $100 million in a vehicle that had held around $150 million, while managing parallel exposure as the U.S. Attorney's Office for the Southern District of Florida evaluates a potential criminal case. The matter is ongoing.

Frequently Asked Questions

What is the difference between an SEC informal inquiry and a formal order of investigation?

An informal inquiry involves voluntary document requests and may include voluntary interview requests. A formal order of investigation, authorized by the Commission, gives the SEC staff the power to compel testimony and document production through subpoena. Testimony under a formal order is under oath; false statements can be charged as federal crimes. Receiving a formal order is a significant escalation but does not mean an enforcement action is inevitable.

What is a Wells Notice and what should I do if I receive one?

A Wells Notice formally notifies you that the SEC staff intends to recommend an enforcement action, and invites a Wells submission responding to staff's preliminary conclusions. A well-crafted submission can cause the staff to decline to recommend enforcement or recommend lesser charges. It requires deep understanding of the evidence assembled, the legal theories to be pursued, and the most persuasive arguments. Alejandro Soto has handled Wells submissions from both sides of the process.

Can an SEC investigation lead to criminal charges?

Yes. The SEC and DOJ closely coordinate. When the SEC develops evidence of criminal conduct, it routinely makes criminal referrals to the relevant U.S. Attorney's Office. The existence of a parallel criminal investigation constrains how a client responds: a witness can assert Fifth Amendment rights in a criminal proceeding but generally cannot do so in an SEC civil proceeding without adverse inference risk. Defense strategy must account for both proceedings simultaneously.

I received a phone call from an SEC staff attorney asking to speak with me. I was not served with a subpoena. Do I have to talk to them?

No. A phone call from SEC staff, or even a letter requesting a voluntary interview, is not legally compulsory. You have no obligation to speak with the SEC voluntarily, and you should retain experienced securities enforcement counsel before responding or agreeing to any interview. Voluntary statements to the SEC can be used against you in enforcement proceedings and are potentially available to DOJ prosecutors in a parallel criminal investigation. The SEC cannot compel testimony without a formal order of investigation and a subpoena. Until a subpoena is served, every interaction with the SEC is voluntary, and retaining counsel before any interaction is the most important protective step you can take.

Team

View profile →

Alejandro O. Soto

Founding Partner

View profile →

Michael E. Garcia

Partner

View profile →

Eric I. Bustillo

Partner

More in Securities Enforcement & Regulatory Compliance

Issuer Disclosure, Accounting Issues & Financial Reporting

Defense in SEC issuer disclosure and accounting fraud investigations and financial reporting enforcement actions.

Audit Committee Representations

Independent counsel for audit committees conducting special investigations, from accounting irregularities to FCPA and executive misconduct.

CFTC & NFA

Defense in CFTC enforcement actions and NFA emergency proceedings involving commodity advisers and trading firms.

Cryptocurrency & Digital Assets

Defense in SEC, CFTC, and DOJ enforcement actions involving cryptocurrency and digital asset businesses.

← Securities Enforcement & Regulatory Compliance All Capabilities

Related Insights

SEC EnforcementJuly 20, 2026

Eric Bustillo, Former Longtime Director of the SEC’s Miami Regional Office, Joins Fridman Fels & Soto as Partner

Eric I. Bustillo — who led the SEC's Miami Regional Office for more than fifteen years — joins Fridman Fels & Soto as a partner, deepening the firm's securities-enforcement and white-collar defense practice.

White CollarMay 5, 2026

SEC Subpoena vs. Grand Jury Subpoena — What’s the Difference and Which Is More Serious?

If you’ve received a subpoena, the first question is simple: How serious is this? The answer depends on who issued it and what stage the investigation is in . T

SEC EnforcementOctober 29, 2025

The SEC’s “Open Jacket” Policy: What’s Old Is New (and Open) Again

We recently discussed the Wells Process , that procedural crossroads where advocacy and enforcement meet. And as it turns out, what’s old is new—and newly open—

Facing a government investigation?

Time matters. Contact us before the first interview request.

Contact the Firm