In a recent speech to a lawyer's group, Robert Khuzami, Director of the SEC's Division of Enforcement, warned defense counsel against engaging in "questionable defense practices" during SEC investigations and enforcement proceedings.   Such questionable practices include representing multiple parties with potentially divergent interests, witnesses who claim lack of recollection, signaling during testimony, over-asserting privilege to delay document production, and white-washed internal investigations.  Mr. Khuzami warned that such conduct could result in referrals to the Office of General Counsel, the Justice Department, and state bar associations. 

OUR TAKE: Defense counsel should seriously consider the limits of "zealous representation" in SEC actions as compared to civil litigation.