Publication Date
2009
Abstract
The Securities and Exchange Commission "SEC" can investigate and discipline attorneys for "unethical or improper professional conduct" Although the SEC's disciplinary authority extends to all attorneys for more than 70 years it only investigated transactional attorneys Recently however the SEC announced that it is now investigating litigation attorneys for professional misconductThis Article examines the problems that arise because the SEC staff that is investigating and prosecuting a client is also allowed to investigate the professional conduct of the litigator representing that client The Article explains that the SEC's rules governing litigator conduct are unclear and therefore susceptible to agency abuse The SEC can use ethics investigations or even threats of investigations to remove attorneys from cases or to intimidate attorneys into less zealous advocacy During ethics investigations the SEC can further erode the attorneyclient relationship by pressing litigators for confidential information ordinarily protected by the attorneyclient privilege By dividing the client from the attorney the SEC can gain the upper hand in its investigation of the client Because of these problems the SEC should not investigate litigators for professional misconduct Instead litigators' ethical lapses should be investigated by state attorney disciplinary agencies or if the allegations are very serious by criminal authorities The SEC can then impose reciprocal discipline
Recommended Citation
Julie A. Hill,
Divide and Conquer: SEC Discipline of Litigation Attorneys,
22
Geo. J. Legal Ethics
373
(2009).
Available at:
https://scholarship.law.ua.edu/fac_articles/150