Securities Regulation and Litigation

Representation of associated individuals of interest ordered to provide on-the-record testimony or asked to participate in witness interviews conducted by the SEC, FINRA, or the DOJ in matters concerning, among other issues, insider trading activity, false or misleading statements, conflicts of interest, and investment suitability.

Representation of broker-dealers (i.e., prime brokerage business) and associated individuals (i.e., financial advisors) in customer-based FINRA arbitrations concerning the prosecution and defense of various claims such as breach of contract, breach of fiduciary duty, fraud, misappropriation and unjust enrichment.

Representation of an issuer of certain mortgage-backed securities in an SEC investigation into whether a Nationally Recognized Statistical Rating Organization (NRSRO) complied with industry conflict of interest rules when assigning the credit ratings of those securities.

Representation of a broker-dealer in connection with a FINRA sweep review concerning the functionality and supervision of the rights of reinstatement and contingent deferred sales charge programs operated on the firm’s mutual fund platform.

Representation of a major broker-dealer in connection with an SEC investigation into its compliance with industry rules requiring the provision of trade confirmations to retail customers in connection with their purchase and sale of debt securities.

Representation of registered representatives in a FINRA investigation of a broker-dealer concerning violations of industry rules governing non-cash compensation practices and arrangements (i.e., via gifts and entertainment) with clients, prospects, and other third-parties.

Representation of  SEC-registered investment advisers in investigations led by the SEC's Chicago, Los Angeles, Denver and DC/HO offices into the advisers' 12b-1 fees, transaction fees, revenue sharing from advisory clients participating in a bank sweep program, and other fees practices.

Assisted client with resolution of FINRA investigation and action concerning private placement matters by significantly narrowing restitution period and entirely eliminating monetary fine component of acceptance, waiver and consent (AWC).

Representation of SEC-registered investment advisers and dual registrants in examinations focused on the SEC Custody Rule (currently Rule 206(4)-2). Relevant experience includes examinations with audit exception issues (for private fund advisers) and related person custodian relationships (for dual registrants).

Advised SEC-registered investment advisers in connection with implementation of SEC Marketing Rule, including with regard to presenting performance and building new testimonial/endorsement/referral programs. Counseling investment advisers on a regular basis on matters regarding hypothetical performance specifically and performance presentation more generally.

Advised several broker-dealers regarding implementation of Regulation Best Interest, including analysis of conflicts of interest, disclosures and internal controls, with a focus on compensation practices.

Advised global bank regarding SEC and FINRA regulatory obligations in connection with multi-country transition of records to cloud storage and also coordinated U.S. team providing securities, banking and mortgage advice for transition to cloud storage.

Arbitrators awarded our investor-client $18.9 million on claims of mismanagement and securities fraud against the founder/manager of two closely held investment vehicles.

Secured favorable settlements for multiple former clients of a broker who misappropriated over $100 million from several dozen customers, while misrepresenting that their accounts had grown to approximately $275 million in value.