The number of cases brought by the SEC against attorneys under its Rule of Practice 102(e) will continue to climb.
In the wake of the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the number of SEC cases against attorneys, pursuant to Rule 102(e) or through cease-and-desist actions, has risen. The SEC’s Office of the General Counsel now is receiving referrals about potential attorney misconduct from the Enforcement Division on a regular basis. Under Rule 102(e), the SEC may censure or bar persons from appearing or practicing before it for various reasons, including, but not limited to, “negligent conduct” or “unethical or improper professional conduct.” OGC handles Rule 102(e) complaints while the Enforcement Division may file other types of actions against attorneys for securities law violations.
In sum, attorneys are being targeted by the SEC’s in full measure.