Under FINRA rule 8210, FINRA is authorized to compel testimony and can compel production of documents from individuals and firms. FINRA does this by issuing a letter of inquiry. FINRA 8210 letters can require you to produce documents and information for anything tied to a customer. FINRA can force you to document your firms activities, outside business contacts, and more. If you get a 8210 letter of inquiry from FINRA, it’s important you hire a FINRA attorney immediately.

Because FINRA has the power to compel any broker dealer to produce documents and information, it’s important that any on the record interview is done with the help of a finra defense attorney.

It’s important you speak to an attorney to understand how your possible answers can impact your future. 8210 letters should be taken seriously. Depending on the facts, it might be in your best interest to invoke the 5th amendment before you accidentally say something controversial that harms you. Depending on what you say, there could be possible charges brought by federal or state agencies. When you refuse to cooperate with a FINRA investigation, it can be catastrophic.

You shouldn’t automatically refuse to cooperate with FINRA. FINRA can bring disciplinary actions and have you sanctioned, or kicked out of the industry, if you fail to respond to an 8210 letter.

If you receive an 8210 letter, it means an investigation by FINRA is underway. It also means, now is the time to hire a FINRA defense lawyer to help you.

How should I respond to an 8210 letter?

The right response can solve a FINRA investigation. If you say too much, or provide incriminating documents, you might expand the scope of a FINRA investigation. You could make yourself a target of an investigation, instead of simply being a witness/tangential party. Even if you have done nothing wrong, you could get involved if you don’t respond, or respond incorrectly to an 8210 letter.

It’s imperative you hire a FINRA defense attorney to represent you as soon as you learn of any possible FINRA investigation.

If you’re being investigated by FINRA, it’s important you understand how, and why, FINRA is investigating you. It’s critical you understand how FINRA conducts its investigations, and why it decides to charge you. It’s also important you hire a FINRA defense attorney who will actively work to protect your rights, and create a strategy to help with the situation you’re in. The right FINRA defense attorney can help you understand the investigation, and navigate it. This is a stressful situation. Having the wrong attorney can make it even more stressful.

Hire a FINRA Defense Lawyer 

FINRA investigations begin as an inquiry. FINRA staff issue a Rule 8210 request, which seeks documents and answers concerning a matter. The response you give is important, it locks you into a story. Our FINRA defense attorneys understand how important this step is, and actively work to prevent you from putting yourself into a situation where you are in danger, or will be charged.

Regardless of which stage you’re at, our attorneys can help you navigate it.

Microcap Fraud Defense

The Spodek Law Group team of attorneys can help with Microcrap fraud defense. Our defense attorneys help clients, who have complex corporate securities issues, including microcap fraud. We can handle all stages of the Microfraud fraud investigation and litigation process. We help small, and large, corporations, and provide defense strategies to help combat unfair accusations of microcap fraud.

If you’ve been charged, or if you’re being investigated, for microcap fraud, now is the time to take action. The SEC has increased enforcement efforts and is coordinating with other agencies like the FBI. Microcap companies are at immense risk. Successful investigations can result in jail time and other penalties. You need a Microcap fraud defense lawyer who can help you. You shouldn’t wait to get in touch with an experienced defense lawyer.

Any charge against you has the power to shut down your hard work, and the company. It’s critical you do everything possible to defend your rights.

At Spodek Law Group, we are qualified in handling securities fraud cases, and microcap fraud. We are a national law firm that has defense attorneys who can help you.

What’s microcap fraud

This is a type of securities fraud which involves microcap companies. The fraud occurs on the OTC market for securities, instead of a national securities exchange. The microcap stock, is traded on two systems: Pink Sheets and OTC Bulletin Board. The microcap stock is usually a very low priced stock. It can be difficult to find microcap fraud because microcap companies don’t report financial reports with the SEC. They are subject to less regulations. Companies that are targeted with microcap fraud usually have market cap of $250 million or less.

Examples of Microcap fraud

Pump and dump: Most common example of microcap fraud. It happens when investors are told by telemarketers to buy stock, and sell before the price goes down. Once its hyped, insiders sell the stock and make a profit.

Off shore scam: Company sells their stock outside of the USA to foreign investors. They don’t need to register their stock under the Regulation S. This off-shore microcap scheme happens when a microcap company sells unregistered stock at a discount, to fraudsters – who are acting as if they are foreign investors. These investors then sell the stock to USA investors at inflated prices. They share the profits with the insiders.

It’s not uncommon for fraud involving microcap stock to involve email spam, promoters, press releases, and other forms of internet fraud.

How Microcap fraud investigations happen

It’s easy for an investor to say they were harmed by fraud in a microcap company. There are easy to follow steps on the SEC’s website that tells an investor how to contact the SEC and report a potential fraud. The SEC also lists red flags that tells investors of certain fraudulent activity.

Microcap fraud charges are usually associated with violations of securities laws such as:

• Section 10(b) of the Securities Act of 1934.
• Section 17(a) of the Securities Act of 1933
• Aiding/Abetting with fraudulent activity
• Acting as unregistered broker-dealer and failing to register
• Failing to comply with registration provisions of the securities act
• Conspiracy charges

How should you respond if you’re charged/arrested

A charge of microcap fraud can result in criminal penalties and jail time. The SEC might also seek disgorgement, which means the return of all ill-gotten gains, plus interest. An investigation can result in huge expenses, and could present challenges for your company. The SEC is very serious about investigating microcap fraud. Microcap companies are easy targets for federal agents.

If you’re charged, and need help defending your company, call our offices today.