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SEC Enforcement Order Highlights Far Reach of Pay-to-Play Restrictions

By Zachary G. Parks & Samuel Klein on August 23, 2024
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The Securities and Exchange Commission (SEC) this week issued a cease-and-desist order that demonstrates the SEC pay-to-play rule’s expansiveness and the SEC’s readiness to enforce it to the letter, even when it is virtually impossible that a political contribution could have influenced a government entity’s investment decision.

In this alert, we summarize the SEC order and its implications.

  • SEC Enforcement Order Highlights Far Reach of Pay-to-Play Restrictions
Photo of Zachary G. Parks Zachary G. Parks

Zachary Parks advises corporations, trade associations, campaigns, and high-net worth individuals on their most important and challenging political law problems.

Chambers USA describes Zachary as “highly regarded by his clients in the political law arena,” noting that clients praised him as their “go-to…

Zachary Parks advises corporations, trade associations, campaigns, and high-net worth individuals on their most important and challenging political law problems.

Chambers USA describes Zachary as “highly regarded by his clients in the political law arena,” noting that clients praised him as their “go-to outside attorney for election law, campaign finance, pay-to-play and PAC issues.” Zachary is also a leading lawyer in the emerging corporate political disclosure field, regularly advising corporations on these issues.

Zachary’s expertise includes the Federal Election Campaign Act, the Lobbying Disclosure Act, the Ethics in Government Act, the Foreign Agents Registration Act, and the Securities and Exchange Commission’s pay-to-play rules. He has also helped clients comply with the election and political laws of all 50 states. Zachary also frequently leads political law due diligence for investment firms and corporations during mergers and acquisitions.

He routinely advises corporations and corporate executives on instituting political law compliance programs and conducts compliance training for senior corporate executives and lobbyists. He also has extensive experience conducting corporate internal investigations concerning campaign finance and lobbying law compliance and has defended his political law clients in investigations by the Federal Election Commission, the U.S. Department of Justice, Congressional committees, and in litigation.

Zachary is also the founder and chair of the J. Reuben Clark Law Society’s Political and Election Law Section.

Zachary also has extensive complex litigation experience, having litigated major environmental claims, class actions, and multi-district proceedings for financial institutions, corporations, and public entities.

From 2005 to 2006, Zachary was a law clerk for Judge Thomas B. Griffith on the United States Court of Appeals for the District of Columbia.

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Photo of Samuel Klein Samuel Klein

Samuel Klein counsels clients on mitigating reputational risks, responding to government investigations, and navigating the regulatory and political environment for strategic public engagement. As a member of Covington’s Election and Political Law Practice Group, Sam helps clients facing Congressional investigations and advises on…

Samuel Klein counsels clients on mitigating reputational risks, responding to government investigations, and navigating the regulatory and political environment for strategic public engagement. As a member of Covington’s Election and Political Law Practice Group, Sam helps clients facing Congressional investigations and advises on election administration, ethics, and campaign finance laws. Working with the firm’s Public Policy Practice Group, he advises on federal and state initiatives for clients in technology, finance, and other regulated industries. He maintains an active pro bono practice. Before joining Covington, Sam served as a law clerk at the Federal Election Commission, interned for two committee leaders in Congress, and worked as a public affairs consultant.

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  • Posted in:
    Banking, Finance and Securities
  • Blog:
    Inside Political Law
  • Organization:
    Covington & Burling LLP
  • Article: View Original Source

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