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Faced with an SEC Investigation? Form 1662 is a Great Checklist.

Panelists: LORI PATTERSON, BOB CORNISH, STEVEN KRAMER, RONALD FIELDSTONE

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Lori Patterson
Securities Attorney, Baker Donelson

 

 

   

SEC Investigation

An SEC investigation of an EB5 Regional Center or Issuer often starts with either formal service of a Subpoena for documents or a Preservation Notice from the SEC stating that you may have documents in which they might be interested. 

The Preservation Letter puts you on notice to maintain availability of the items listed. This will buy the SEC time to begin a more thorough investigation, which might then branch out to other associated parties.

SEC Form 1662 will be provided to you with any SEC subpoena for documents or testimony. This Form is easy to overlook, because it appears to be a routine government set of instructions of EB5 process.  However, it should be read in its entirety  because it contains really valuable information for those unfamiliar with the SEC and its investigatory process.

Form 1662 tells you how the SEC might use the information you provide to them, what rights you have in the process and the penalties for failure to respond completely or truthfully. 

One of the most important sections on the Form is the detailed description of how the SEC can use your information, including the ability to share it with other governmental entities.