Regulatory Enforcement Defense

  • Representing a global bank senior executive in SEC investigation of supervision.
  • Representing the President and CEO, and separate Finance Executive, of a private company in SEC investigation regarding sales of private placement securities to international investors.
  • Representing a broker-dealer and registered representative in FINRA investigation of Outside Business Activities related to purchases of private placement securities.
  • Representing a broker-dealer in FINRA investigation concerning Large Options Position Reporting (LOPR).
  • Represented leading national securities exchange in investigation by the SEC Division of Enforcement related to exchange order type functionality, which concluded with a formal closing letter from the Division.
  • Representing an investment services company regarding the Municipalities Continuing Disclosure Cooperation Initiative (MCDC).
  • Serving as defense counsel for a Swiss bank in connection with the Department of Justice Program for Non-Prosecution Agreements or Non-Target Letters for Swiss Banks.
  • Representing an individual criminally charged with insider trading.
  • Representing a broker-dealer owner in FINRA investigation into overseas trading and related supervisory issues.
  • Representing a senior trader of global bank in SEC enforcement action alleging parking of securities.
  • Representing a global bank’s senior capital markets executive in FINRA enforcement action alleging failure to establish adequate supervisory procedures.
  • Representing a broker-dealer in FINRA investigation into potential information barrier violations.
  • Representing a private equity firm’s principal in a settled SEC enforcement matter alleging conflicts of interest and non-disclosure.
  • Representing a financial institution as lead counsel in trial of an SEC administrative proceeding.
  • Representing a major broker-dealer in a FINRA investigation related to mutual fund sales practices and customer suitability.

Looking Forward

SEC Enforcement’s November 2017 “priorities” report promises a “vigorous” 2018 program that will increasingly target individuals along with their entities, demand “goal focused” sanctions “tailored” to particular situations, and increasingly rely on technology and data analytics. Recent SEC initiatives include a new Cyber Unit with expertise in cyber-intrusions, distributed ledger technology, and the dark web. The SEC has also created a Retail Strategy Task Force to ensure equal focus on Main Street and Wall Street. The SEC has committed to moving its investigations faster, particularly in view of the recent Supreme Court ruling holding the SEC to a five-year statute of limitations in disgorgement and penalty claims. Meanwhile, FINRA’s recent merger of its two enforcement teams into a single unit with a new leader – part of the “FINRA 360” self-evaluation – will likely produce new SRO enforcement approaches.