Being served with a federal subpoena—especially one issued by a powerful agency like the Securities and Exchange Commission (SEC)—is serious. Whether you're being asked to produce documents, testify, or provide information, failing to comply with a federal subpoena can result in severe legal consequences, including civil penalties, criminal charges, and lasting professional damage.
If you live in Los Angeles and are under investigation or subpoenaed by a federal agency like the SEC, you need to consult with an experienced immediately. Here's what you need to know.
What Is a Federal Subpoena?
A federal subpoena is a legal order requiring an individual or business to provide information, documents, or testimony in connection with a federal investigation. In cases involving the Securities and Exchange Commission (SEC), these subpoenas often relate to investigations into securities fraud, insider trading, or violations of federal financial regulations.
Subpoenas can come in two main forms:
- Subpoena ad testificandum: Requires personal testimony.
- Subpoena duces tecum: Demands production of documents or records.
Failing to comply with either type of subpoena without proper legal grounds can lead to both civil and criminal penalties.
Legal Consequences of Non-Compliance
1. Civil Contempt of Court
If you ignore an SEC subpoena, the agency may petition the federal court under 15 U.S.C. § 78u(c) to enforce compliance. A judge may then hold you in civil contempt, which could lead to:
- Monetary fines
- Coercive sanctions, such as daily penalties until you comply
- Injunctive relief, ordering you to hand over the requested documents or testify
In essence, the court is empowered to pressure you into compliance through escalating penalties.
2. Criminal Contempt Charges
For more serious or willful violations, the court may refer your case for criminal contempt under 18 U.S.C. § 401. This can result in:
- Fines
- Jail time, often up to 6 months (or longer if formally prosecuted)
Unlike civil contempt, which is designed to compel action, criminal contempt is punitive, meant to punish you for defying the court.
3. Obstruction and False Statement Charges
If you actively obstruct an investigation or mislead federal agents, you may face additional federal criminal charges, such as:
- Obstruction of a federal investigation – 18 U.S.C. § 1505
- Up to 5 years in prison
- Up to 5 years in prison
- Making false statements to a federal agency – 18 U.S.C. § 1001
- Up to 5 years in prison
- Up to 5 years in prison
Failing to disclose relevant documents, hiding information, or submitting false records could all be charged under these laws—even if you never intended to deceive.
Collateral Consequences
Beyond court-imposed penalties, failing to comply with a federal subpoena can create long-term personal and professional damage, including:
- Loss of professional licenses (e.g., CPA, FINRA registrations, legal credentials)
- Reputational harm—especially for those in finance, law, or public-facing industries
- Adverse inferences in civil court, including shareholder lawsuits or other litigation
- The SEC may seek to freeze assets, impose civil fines, or ban you from serving as an officer or director of a public company
Even if you avoid jail, your career and finances may suffer irreparable harm.
What to Do If You Cannot Comply
If you believe the subpoena is too broad, overly burdensome, or may violate privileged communications (e.g., attorney-client privilege), you must not ignore it. Instead, your attorney can file a motion to quash or modify the subpoena in federal court.
Courts expect individuals to either comply or assert their legal objections in a formal, timely manner. Doing nothing—or delaying until it’s too late—can quickly escalate the situation.
How an Attorney Can Help
At Stephen G. Rodriguez & Partners, we’ve handled numerous federal matters involving subpoenas, regulatory investigations, and complex white-collar crimes. Here's how we can help:
- Review the subpoena and determine if you are the target, subject, or witness
- Assert applicable privileges or legal objections
- File motions to quash, limit, or modify overly broad requests
- Protect your rights during any interviews or testimony
- Help you negotiate with the SEC to avoid criminal charges or sanctions.
Take Action — Don’t Wait for the Feds to Decide Your Fate
Federal investigations move fast—and prosecutors build cases silently before you ever hear from them. If you’ve received an SEC subpoena or suspect you’re under investigation, the worst thing you can do is ignore it.
Call us now at (213) 481-6811 for a confidential, no-obligation consultation.
Let Stephen G. Rodriguez & Partners help protect your future.