U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25998 / May 8, 2024
Securities and Exchange Commission v. Cobb, Civil Action No. 24-mc-173 (S.D.N.Y. filed Apr. 8, 2024)
SEC Obtains Court Order to Enforce Investigative Subpoena Against Former Registered Representative
On May 7, 2024, the U.S. District Court for the Southern District of New York granted the Securities and Exchange Commission’s application to enforce a subpoena for the production of documents and testimony issued to Eric M. Cobb (“Cobb”).
If a person or entity refuses to comply with a subpoena issued by SEC enforcement staff pursuant to a formal order of investigation, the Commission may file a subpoena enforcement action in federal district court seeking an order compelling compliance.
According to the SEC’s filing, the SEC is investigating whether Cobb and others violated the federal securities laws by, among other things, misrepresenting material facts about trade allocations and trade allocation practices in connection with the offer or sale of securities. As stated in the filing, the SEC staff served Cobb multiple times with investigative subpoenas requiring the production of certain documents and compelling his testimony. According to the filing, despite numerous attempts to secure Cobb’s compliance with the subpoena, Cobb failed to produce documents or appear for testimony.
The SEC’s application sought a court order directing Cobb to comply fully with the subpoena. On May 7, 2024, the Court granted the SEC’s application and ordered Cobb to produce non-privileged responsive documents and to appear for testimony. The Court’s order also stated that in the event Cobb does not produce documents or appear for testimony, the Court may hold him in civil contempt. The SEC is continuing its fact-finding investigation and, to date, has not concluded that any individual or entity has violated the federal securities laws.
The SEC’s investigation is being conducted by Bennett Ellenbogen, Lindsay S. Moilanen, and Richard G. Primoff of the SEC’s New York Regional Office under the supervision of Sheldon L. Pollock and Alex Vasilescu. Mr. Ellenbogen and Mr. Primoff litigated the subpoena enforcement action.