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 2018, we expect the SEC to focus on the adequacy of corporate policies and procedures in detecting and preventing the misuse of material, non-public information. We also expect the Commission to continue to focus on fee disclosure and conflicts of interest, the allocation of expenses and investment opportunities at private equity funds and hedge funds, and valuation. We further anticipate that the SEC will increase 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.”