We routinely report enforcement actions directed against lawyers because it simply never goes away. Attorneys are a major target for federal and state securities regulators. Regulators salivate over “getting” attorneys, because they receive notoriety and money from the attorney’s malpractice carrier for investors.
Additionally, the SEC’s new cooperation initiative may result in even more enforcement actions against attorneys. Attorneys need to understand that some of their clients will be looking to accuse them to obtain credit for cooperation. Clients do not owe attorneys any fiduciary duty although attorneys do not have the same protection.
In short, attorneys need to protect themselves.