Investigation Exposure: Proposed Law Could Give SEC Greater Access to Information

Companies simultaneously undergoing civil and criminal investigations will have one more thing to worry about if the Investor Protection Act, which the House passed in December 2009, becomes law.

Under the potential legislation, information obtained during a Department of Justice (DOJ) grand jury investigation may be shared with the Securities and Exchange Commission (SEC), a departure from the secrecy previously granted to DOJ grand jury investigations. Though many companies investigated for securities fraud face scrutiny from both agencies, this rule would more closely intertwine the civil and criminal inquiries.

Associate Editor

Lauren Williamson

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