The wave of accounting, auditing and corporate governance scandals which swept the country in the wake of the Internet and high tech stocks “bubble” of the late 1990s has led to a corresponding increase in securities law enforcement activity in the new millennium.  Besides the energized and suddenly well funded U.S. Securities and Exchange Commission, numerous state securities law authorities, as well as state and federal criminal prosecutors, have focused their attention on the alleged misdeeds of officers and directors of publicly held companies.  In addition, the increased duties of public companies’ officers and directors, particularly outside directors, and of outside accounting firms under the Sarbanes-Oxley Act of 2002 has led to a heightened sensitivity of boards of directors to even the appearance of impropriety by public companies, its officers and directors.

DGS has represented a wide variety of entities and individuals in both preliminary, or “informal”, SEC staff inquiries as well as “formal” investigations based on a private order of investigation issued by the SEC itself.  With that experience, DGS attorneys are cognizant of the unique procedural and substantive context of SEC investigations generally and are especially qualified to counsel clients faced with the complex risks involved, including but not limited to those persons targeted by the investigation.  DGS has also represented individuals in connection with parallel criminal investigations of securities violations, where the understanding of the complex interplay between potential SEC civil proceedings and criminal charges is critical to effective representation. Finally, DGS has represented individuals and companies in civil investigations and administrative proceedings before various state securities authorities, including proceedings before the Colorado Securities Board.

DGS has assisted boards of directors and committees of independent directors of such boards in conducting internal investigations of potential violations of law, including alleged breaches of fiduciary duty under state law and violations of the anti-fraud and reporting provisions of state and federal securities laws.  The breadth of experience and depth of understanding that DGS brings to such investigations enables these corporate fiduciaries to fulfill their weighty responsibilities in such investigations in an effective and judicious manner.