Securities Litigation, Regulatory Investigations, and Enforcement

Represented an investment advisor against 10b-5 security fraud claims, prevailing on a motion to dismiss in the Eastern District of Pennsylvania and then successfully arguing on appeal to the Third Circuit which affirmed the District Court’s opinion.

Has represented RIAs in 23 different jurisdictions (including in AAA and FINRA arbitrations) regarding SEC compliance, customer complaints, and employment related matters. In an effort to proactively prevent expensive litigation, our team has developed recruiting, transition, and practice protection strategies on behalf of RIAs concerned about legal issues. We regularly represent registered investment advisors and advisory firms in advisor transitions, having assisted in approximately 775 advisor transitions in the last 15 years.

Has represented numerous broker-dealers in all aspects of compliance related matters in FINRA. Represents advisors, partnerships, and teams during transitions between competitors (both the recruitment and pursuit of) in order to ensure regulatory compliance and prevent breach of contracts or law. Has applied for court intervention, temporary restraint, and preliminary injunctions to prevent out-going advisors/talent from unfairly competing against their former employers. Our team utilizes litigation, arbitration, and dispute resolution when breaches do occur.

Represented a whistleblower providing information on securities-related violations to the SEC, IRS, and DOJ programs. Has represented numerous other whistleblowers, including those filing complaints in pursuit of the Whistleblower Bounty Program.

Defense of securities fraud, common-law fraud, and breach of fiduciary duty before New Jersey Superior Court.

Defended alleged co-conspirator financier and agent for main defendant in an ongoing securities and wire fraud investigation/prosecution concerning investment pools and securities for commercial industrial vehicle components.

Defense of potential litigant in an ongoing Texas State court litigation alleging securities fraud in the sale of shares of mining equipment.

Successful defense of one of the largest securities and wire fraud indictments of the President and CEO of a private financial services firm brought by the Westchester District Attorney’s Office, New York.

Represented a former advisor of a regional investor services company against an NY state claim that they had misappropriated confidential client information and trade secrets. Moved to dismiss the case based on lack of jurisdiction, which was successfully granted by the court.

Successfully defended against the issuance of a Temporary Restraining Order and Preliminary Injunction claiming the misappropriation of confidential client information and breach of contract in New Jersey State Court against an advisor who departed from Edward Jones LLP and joined a competitor.

Represented a Tennessee-based Registered Investment Advisor (RIA) in a suit against former owners and employees regarding misappropriated trade secrets, confidential information retention, and unlawful competition. Subsequently filed arbitrations and successfully settled without the need for litigation.

Partnered with major international law firm as essential team member in a high-stakes and high-profile trial defending a hedge fund and its principal against breach of contract accusations brought by former employees, and asserting counterclaims for breach of fiduciary duty and defamation. Duties encompassed witness preparation, examination drafting, supervision of junior attorneys, drafting of critical motions and applications, involvement in oral arguments, and regular communication with opposing counsel and the trial judge.

Managed document collection, review, and production in an international criminal investigation by the Department of Justice and banking regulators, addressing complex issues of international Bank Secrecy Law and money laundering.

Member of the trial team representing investors in action in Alabama brought by a public REIT stemming from a troubled real estate investment. Helped to defeat two summary judgment motions and obtain a jury verdict for $12.7 million, including $6 million in punitive damages on counterclaims for fraud and breach of fiduciary duty.

Represented Korean securities firms in FINRA arbitration against a former executive and a simultaneous state court lawsuit brought by the former executive. Successfully appealed and obtained reversal of the trial court’s denial of our motion to compel arbitration, ending the court litigation and forcing the former executive to submit to a more favorable FINRA arbitral forum.

Defended GMG Capital Partners in a Section 10b-5 shareholder securities fraud case which was dismissed on summary judgment in the Southern District of New York.

Successfully represented an RIA that had jumped from Edward Jones to Thurston Springer Financial and was accused of soliciting former clients in violation of his employment agreement. Secured a rejection of Edward Jones' motion for a temporary restraining order and preliminary injunction. (Edward Jones v. John Kerr and Thurston Springer Financial (Southern District of Indiana 1:19-cv-03810))

Represented a broker who moved from Edward Jones to Ameriprise Financial who was facing breach of contract, misappropriation of trade secrets, and breach of fiduciary duty claims. Successfully secured a denial and dismissal of Edward Jones' request for a temporary restraining order. (Edward Jones v. James Paul Farrell (Superior Court of New Jersey, Bergen County C-116-1))

Represented a broker who moved from Edward Jones to Ameriprise Financial who was facing breach of contract and trade secret claims. Successfully argued a counterclaim of unfair competition, civil conspiracy, and tortious interference, with the panel awarding our client and Ameriprise a total of $762,000. (Edward Jones v. Peterson and Ameriprise Financial Services, Inc. (FINRA #19-03340))

Won $2,500,000 compensatory and punitive damages judgment in securities and fraud case against Beverly Hills business manager; won appeal and collected judgment from funds held in Swiss bank.

Obtained Director and Officer Liability coverage and payment of defense fees and costs after insurer withdrew coverage and defense of minority shareholder lawsuit against client corporation and its management.

Successfully resolved dispute between majority shareholder-board chair in dispute with dissident minority shareholders-officers.

Successfully resolved action by former shareholder of corporation claiming interest in real property acquired by shareholders for benefit of the corporation, but held in their individual names. Obtained agreement by former shareholder to deed and release any interest in real property to the corporation.

Won Judgment for Issuance of Writ of Mandate for shareholder directing corporation and officer of corporation to produce corporate records. Obtained Judgment of investment company of Contempt following disobedience of Writ of Mandate.

Won Preliminary Injunction in shareholder derivative action against officers, directors, and shareholders of corporation who wrongfully seized control by mortgaging and misappropriating corporate opportunities and assets, leading to successful resolution of dispute for clients who were former majority shareholders and a director of corporation.

Won Judgment for Respondent corporation defeating Petition for Writ of Mandate brought by dissident shareholder seeking competitively sensitive corporate records from tech company.

Successfully resolved dispute between minority shareholder/member and officer of two restaurant corporations and a limited liability company through action for dissolution that resulted in mediated multi-million dollar buy-out agreement.

Won judgment for defendants in two actions filed by minority shareholder against tech company and management for alleged breach of fiduciary duty, improper issuance of shares, breach of contract, and fraud. Won motions for summary judgment in both actions defeating all claims before trial.

Represented a Fortune 100 institutional investor asserting securities fraud claims under federal and state law in connection with a bank’s conduct as underwriter, seller, and/or issuer of certain residential mortgage-backed securities.

Represented the bankruptcy estate of a large financial institution in ADR proceedings seeking
indemnification for loan originators’ breaches of representations and warranties on collateral underlying certain mortgage-backed securities.

Successfully defended a private equity fund in an action by an investor alleging securities fraud. Claims were dismissed on summary judgment.

Represented client in all aspects of the enforcement investigation, including coordinating discovery, conducting internal investigation of allegations, defending on-the-record testimony, and negotiating settlement.

On behalf of Independent Counsel appointed by the Securities Exchange Commission, Commodity Futures Trading Commission, Federal Reserve Board, and New York State Banking Department, investigated major investment firm’s domestic and international over-the-counter derivatives business, including primary responsibility for New York marketers and bookrunners, and European transactions and operations. Process included drafting multi-volume report and Executive Summary that presented findings and disciplinary recommendations, as well as multiple presentations to regulatory authorities.

Pursuant to Consent Decree, assessed and reported to the Board of Directors and the New York Stock Exchange on investment house’s policies and procedures for order entry, Rule 144a transactions, margin trading, new account documentation, and supervision of institutional and retail accounts. Recommended changes to policies and procedures based on lessons learned from the investigation.

Represented multinational funds in bankruptcy proceedings arising from the allegations of fraud perpetrated by Bernard L. Madoff Investment Securities LLC.

Represented a biopharma executive in related civil and criminal federal litigation involving allegations of conspiracy, securities fraud, wire fraud and insider trading.

Represented various broker dealers in SEC and FINRA enforcement actions.