RNR Enterprises, Inc. v. Securities and Exchange Commission
United States Court of Appeals for the Second Circuit
122 F.3d 93 (1997)
The SEC (plaintiff) opened a Formal Order investigating possible securities-law violations tied to specialized mobile radio and issued a subpoena compelling testimony from Richard Wells (defendant), the CEO of RNR Enterprises (defendant), a company in that same industry, even though the Formal Order didn't specifically name RNR or Wells. When Wells refused to comply, the SEC filed a declaration explaining the subpoena's basis and asked the district court to enforce it; the district court granted the motion, and RNR and Wells appealed.
Whether, for judicial enforcement of an administrative subpoena, the SEC must show that the investigation serves a legitimate purpose, the inquiry may be relevant to that purpose, the information sought isn't already in the agency's possession, and proper administrative process was followed.