La Jolla, CA asked in Securities Law for California

Q: If the SEC gets an ex-parte on the investment company you have your money in, will they return your money?

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1 Lawyer Answer
Zaven Andranik Sargsian
Zaven Andranik Sargsian
Answered
  • Securities Law Lawyer
  • Salt Lake City, UT

A: I assume you mean that the Securities and Exchange Commission got an ex-parte (i.e. without both sides presenting) temporary restraining order (or preliminary injunction). This may also have been an ex-parte asset freeze, or, for that matter, several other requests. You should have a lawyer in your area review the Securities and Exchange Commission's motion and explain to you what it says. You should preferably look for a lawyer that is familiar with securities law.

That being said, the answer to your question depends on what the participant's of the investment company did, as well as what the SEC attorneys ultimately decide to do. The SEC does have ways of getting money back to investors (of course, depending on if any money is recovered). This may be done through appointed receivers, or, what are called, fair funds or disgorgement funds. Again, you should contact an attorney.

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