First and foremost, the SEC is a law enforcement agency. The Enforcement Division assists the Commission in executing its law enforcement function by: recommending the commencement of investigations of Securities law violations, advising the Commission to bring civil actions in federal court or before an administrative law judge, and by prosecuting these cases on behalf of the Commission. As an adjunct to the SEC’s civil enforcement authority, the Division works closely with law enforcement agencies in the U.S. and around the world to bring criminal cases when appropriate.
The Division obtains evidence of possible violations of the SECURITIES laws from many sources, including: market surveillance activities, investor tips and complaints, other Divisions and Offices of the SEC, the self-regulatory organizations and other SECURITIES industry sources, and media reports.
All SEC investigations are conducted privately. Facts are developed to the fullest extent possible through informal inquiry, interviewing witnesses, examining brokerage records, reviewing TRADING data, and other methods.