By Adam Turteltaub

Think you don’t have to worry about the SEC because you’re at a private company or a non-profit? Think again says, Kevin Muhlendorf, attorney at Wiley Rein. You may still end up in the Commission’s crosshairs.

He warns that the SEC’s power of investigations expands far and wide, and just being a supplier to a publicly-traded company may lead them to focus on your business. If a private company is acquired by a public one or makes even a non-public offering, there is risk of fraud and SEC action.

Lie to an accounting firm and the SEC may become involved.

And don’t forget about the risk of parallel investigations involving multiple enforcement authorities.

Another risk area is shadow trading. Let’s say your hospital is a part of a clinical trial, and an employee sees it is going well. If that employee decides to short the stock of the drug’s competitor, that could be an issue that falls under the SEC.

So what should you do? Keep an eye out for these risks and pay attention to recent enforcement activity and dispositions. Oh, and listen to this podcast.

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