iTalk Inc. (fka TALK)

[Tesla_se]

Unfortunately, the SEC has no obligation to inform witnesses of an investigation's outcome or even its termination. In fact, the witness may never hear from them again. Should the matter proceed further, there are a number of other possible outcomes, including a cautionary letter, a referral to civil or criminal law enforcement organizations, a referral to a self-regulatory agency, administrative proceedings or injunctive actions.

http://seclaw.blogspot.com/2014/01/tips-for-responding-to-sec-subpoena.html

The receipt of a Wells Notice typically does not come as a surprise to the prospective respondent, as there is almost always an investigation that leads up to the Wells Notice, and discussions with the SEC or NASD staff. The real question with a Wells Notice is whether to respond to the notice and whether to make the Wells Submission.

There is no legal requirement for a regulator to provide a Wells Notice to you, however it is the practice of the SEC and the NASD to provide such notice. Procedurally, the SEC and NASD Staff (the people you are dealing with during the investigation) do not have the authority to commence proceedings. They need to obtain approval to commence proceedings. The approval process is handled without any input from the prospective defendant.

http://www.seclaw.com/docs/wellsnotice.htm

Common violations that may lead to SEC investigations include:

Misrepresentation or omission of important information about securities

Manipulating the market prices of securities

Stealing customers' funds or securities

Violating broker-dealers' responsibility to treat customers fairly

Insider trading (violating a trust relationship by trading on material, non-public information about a security)

Selling unregistered securities.

https://www.sec.gov/News/Article/Detail/Article/1356125787012


None of which has happened