It’s a common scenario. Your client is arrested and charged by the government with securities fraud. Simultaneously, the Securities and Exchange Commission (SEC) files civil fraud charges relating to the same conduct. Both the government and the SEC issue press releases and hold press conferences in which they thank each other for cooperating in the investigation and charging of your client.

Shortly thereafter, the government moves to stay discovery in the SEC action. And it prevails — that is, the court overseeing the SEC action grants the government’s discovery stay request, favoring the criminal case over the SEC action.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]