SEC Files Subpoena Enforcement Against Individual for Failing to Produce Documents and Appear for Testimony
Litigation Release No. 24471 / May 20, 2019
Securities and Exchange Commission v. Tracson McLeod, No. 3:19-cv-00926 (S.D. Cal. filed May 16, 2019)
The Securities and Exchange Commission filed a subpoena enforcement action against Tracson McLeod of San Diego, California, seeking an order directing him to comply with an investigative subpoena for documents and testimony.
According to the SEC's application, filed in U.S. District Court for the Southern District of California, the SEC is investigating whether certain individuals or entities violated the antifraud and registration provisions of the federal securities laws through the unregistered offer and sale of securities. Based on its ongoing investigation, the SEC has reason to believe that McLeod was receiving compensation for work performed on behalf of one or more of the parties engaging in these securities transactions, including an individual who has been the subject of prior SEC enforcement actions and who, as a result of those prior actions, has been permanently barred from participating in offerings of penny stock and from association with any broker-dealer.
In December 2018, the SEC issued a subpoena to McLeod seeking the production of documents, including documents related to offers of or transactions in certain penny stocks. The subpoena also required McLeod to appear for investigative testimony. According to the SEC's application, the SEC has made multiple attempts to contact McLeod, including by personally serving the subpoena and sending follow-up correspondence. However, McLeod has not responded to the SEC.
The SEC's application seeks an order from the court compelling McLeod to fully comply with the SEC's subpoena. The SEC is continuing its fact-finding investigation in this matter and, to date, has not concluded that anyone has violated the securities laws.