Private Funds Advisory & Enforcement Defense

  • Defended a global investment management firm in a two and one-half week jury trial. Obtained the complete dismissal of all claims totaling approximately $100 million, and obtained all requested affirmative relief, including damages and legal fees.
  • Prosecuted an action on behalf of a privately-owned hedge fund sponsor. Obtained summary judgment on liability within four months of commencing the action, and obtained all requested relief, including damages and legal fees, after a bench trial on damages.
  • Defended a hedge fund serving as collateral manager of a CDO in an action brought by a CDO investor alleging common law and statutory (consumer protection) claims. Obtained the dismissal of several common law claims and the consumer protection claims. The case settled for less than the cost of defense.
  • Enforcement
  • Represented numerous hedge fund managers and individuals in insider trading investigations.
  • Represented a securities trader in an SEC investigation of asset-backed securities trading activities.
  • Represented a hedge fund manager in an SEC investigation of "cherry picking."
  • Represented a hedge fund manager in a gifts and entertainment investigation.
  • Represented a hedge fund manager and a portfolio manager in a Rule 105 SEC investigation.

Looking Forward

In 2019, we expect the SEC to continue to focus on fee and expense disclosure and the allocation of expenses and investment opportunities at private equity funds and hedge funds. We think the Commission will review funds’ use of affiliated service providers and products and similar conflicts of interest in examinations. We further anticipate that the SEC will continue its focus on cybersecurity with an emphasis on ensuring that private funds’ cybersecurity policies and procedures are both sufficient and being followed, and that such funds have conducted a cybersecurity “risk inventory.” Finally, it is our view that the Commission will continue to monitor digital assets (including regulatory compliance where such assets are “securities”), focusing on areas such as portfolio management and trading, safety of client assets, pricing of client assets, and compliance and internal controls.