"they contain evidence along with the allegations."
Risi,
Your logic is perfect regarding what an attorney WOULD advise. But......
The SEC manual relies on Rule 202.5(c) of Title 17 for its authority to issue the notice and it says:
"Upon request, the staff, in its discretion, may advise such persons of the general nature of the investigation, including the indicated violations as they pertain to them, and the amount of time that may be available for preparing and submitting a statement prior to the presentation of a staff recommendation to the Commission for the commencement of an administrative or injunction proceeding."
Do you believe that the SEC used the phrase "the general nature of the investigation" to indicate that it should "contain evidence"?
Before you decide, this is from some law firms presentation on "KEY ISSUES CONFRONTED DURING THE REPRESENTATION OF DIRECTORS AND OFFICERS FACING SEC ENFORCEMENT ACTIONS". It doesn't differ from another advisory on the subject that I've come across:
"Considerations for Wells Submissions.
1. “Defense counsel . . . often request a ‘Wells meeting,’ at which the staff presents a more detailed account of its case: their view of the relevant facts, the applicable law, and their theory of any violations. The Wells meeting is less a forum for defense counsel to obtain discovery of the Commission’s case than it is a dialogue in which defense counsel can appreciate whether there are any issues – factual, legal, or otherwise – that may affect the Commission’s deliberative process.”
It just seems to me that, should the Wells notice "contain evidence" in the sense that we're discussing, then there would not be a need (maybe not even a desire) for a meeting "at which the staff presents a more detailed account of its case".
Obviously, I appreciate your opinion on this. I guess that it's also obvious that I'm having trouble accepting that, given that 1)these notices have been issued for over 30 years, 2)the vast majority have been resolved one way or another and are meaningless today and 3)I can't think of an example of any other document that can't be found online, including some stuff that NOBODY needs to see, yet I can't find a sample Wells notice that "contains evidence" to prove or disprove this point.
Where's a securities lawyer when you need one? Half the time you can't swing a dead cat, etc.......
