District Judge Lawrence Vilardo

The SEC investigated whether Walter Grenda (Walter) violated a 2015 settlement barring his association with investment advisors for three years. Walter's business was sold to son Gregory and renamed Grenda Group LLC. His wife—Gregory's mother—Maryann is Grenda Group's receptionist. The SEC alleged Walter continued to advise clients after being barred from the Grenda Group. Two motions by all Grenda defendants sought to quash under 12 USC §3401, SEC investigative subpoenas for information about Gregory's and Maryann's bank accounts. Noting that the agency issuing the subpoena need show only a reasonable belief the records sought are relevant to a legitimate inquiry–district court denied both quash motions. Gregory was connected to Walter by a business relationship as well as to the activity under investigation. Thus, his bank statements might shed light whether Walter engaged in conduct violating his three-year bar. The subpoena against Maryann was also relevant. She was not merely an uninvolved family member but also an employee of the organization that Walter—who lacks a bank account—formerly owned and through which he was suspected of doing business in violation of the SEC bar.