Asserting The 5th During SEC Investigations

Law360, New York (August 2, 2011, 1:17 PM EDT) -- When any witness appears before the U.S. Securities and Exchange Commission to be examined during an SEC investigation, they are likely to be warned by a staff attorney that an adverse inference can be drawn against them if they assert their Fifth Amendment privilege.

The warning also usually informs the witness that the adverse inference may be drawn not only in the investigative stage at the SEC, but also in any subsequent legal proceeding brought by the SEC. This second warning has always struck me as...
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