Vinson & Elkins Successfully Defends Against SEC Investigation and Obtains Case Closure and Termination Letter for Firm Client

The SEC’s investigation focused on the marketing of higher-priced “premium” gold and silver coins to investors looking to own precious metals in their retirement accounts. In response to the SEC’s investigation, Vinson & Elkins conducted an internal investigation that focused on the company’s sales and disclosure practices and involved the review and production of over 275,000 pages of documents to the SEC. Vinson & Elkins also made multiple presentations to the SEC, culminating with a voluntary proffer of information to the SEC’s enforcement attorneys in New York in April 2024. Among other things, the Vinson & Elkins litigation team was able to demonstrate the robust nature of and recent enhancements to the company’s compliance program; the numerous and explicit disclosures the company provides to customers; the extensive customer screening and education process that the company requires before allowing customers to invest in its products; and how the majority of customers profited from their investments with the company.

Most critically, Vinson & Elkins was able to distinguish the company from other companies in the industry with less compliant practices that suffered harsh multi-million-dollar judgements and intrusive enforcement actions by the SEC and other regulators in recent years.

On July 19, 2024, the SEC informed Vinson & Elkins that it was closing its investigation and issued a termination letter to the firm for its client. The closure of the SEC’s case and issuance of a termination letter represents a significant victory for the firm and its client, which allows the company to avoid unnecessary reputational harm and costly litigation and enables the company to focus again on quality and compliant service to the customers they serve.

Vinson & Elkins cross-office team was composed of multiple attorneys in the Government Investigations & White Collar Defense Practice Group, led by partner Ephraim (Fry) Wernick, with assistance from partner Rebecca Fike, counsel Brian L. Howard II, senior associate Peter T. Thomas, and associates Lillian Sun and Ami Egerstrom.