The SEC’s Enforcement Division has expressed concerns to the SEC’s General Counsel about defense lawyers possibly obstructing agency investigations – a practice that could lead to disciplinary proceedings.

The Sarbanes-Oxley Act of 2002 provided the SEC with explicit statutory authority to bring cases against lawyers and others under SEC Rule 102(e).  The SEC’s Enforcement Division is focusing on the conduct of attorneys, who may have primary violations certain aiding and abetting violations.  Same tactics are viewed as obstruction or slowing down an investigation.

This concern of the SEC is quite overblown.  Yes, there are “bad apples.”  However, the vast majority of counsel merely defends their clients.  In some respect, these comments from the SEC are nothing more than sour grapes when it loses cases or cannot find a problem.