If the SEC finds wrongdoing in the investigation, it can choose to bring a civil suitagainst parties involved, issue fines or refer the case to the United States Department of Justice for possible criminal charges.
Milberg is also preparing to bring its own class-action suitagainst the prime brokers on behalf of hedge funds, which also believe they are being overcharged or charged for services not provided.
The trial bar's strategy against corporate America up to now has been to file a suit, depress the stock price and bring the company to the table to get a settlement out of it, he said.