Matters

Executive – New York Attorney General Investigation

Successfully represented an executive in a New York State Attorney General investigation into financial improprieties and conflicts of interest.

Telecommunications CEO – Dismissal of Securities Class Action

Represented the former CEO of a public telecommunications company in two securities fraud class actions stemming from the company's bankruptcy. The first complaint alleged fraud in connection with disclosures about the company's credit facility. The plaintiffs then filed a second class action alleging that our client engaged in accounting improprieties and caused the company to issue false financial statements. The court granted our motion to dismiss the second complaint, and we were able to obtain a settlement of the entire matter on terms that were very favorable to our client.

Stock Promoter – Department of Justice and SEC Investigations

Representing a stock promoter in wide-ranging investigations by the Department of Justice and the SEC of securities fraud in the promotion and potential manipulation of the stocks of various start-up companies. 

Ex-President of Guatemala – Department of Justice Criminal Prosecution

Herrick represented former Guatemalan President Alfonso Portillo in defense of a federal money laundering conspiracy charge and other charges following his extradition to the United States. President Portillo pled guilty to a reduced charge and other charges following successful negotiations with the U.S. Attorney's Office, Southern District of New York. Herrick then successfully argued to the U.S. Bureau of Prisons that it credit time already served by President Portillo - including time served in Guatemala while awaiting extradition - to his sentence, greatly reducing the period of incarceration ultimately served.

Hedge Fund Manager – No Action Letter in SEC Insider Trading Investigation

Successfully represented a hedge fund manager and his fund in an SEC insider trading investigation involving a US-based, multinational technology company and the alleged intentional manipulation of securities prices through the creation and spreading of false information.  The investigation concluded with the issuance of a no-action letter from the SEC. 

Securities Trader – Federal Criminal and SEC Civil Insider Trading Charges

Representing a securities trader in a Department of Justice criminal action and a related SEC civil action where our client is charged with participating in an insider trading scheme in which the securities of public companies were sold short in advance of secondary offerings, allegedly based upon material, non-public information. In the criminal case, our client recently received a sentence of Probation.

NYC Attorney – Joint US Attorney and SEC Investigations into Alleged Misappropriation of Funds and Market Manipulation

Represented a prominent former New York City attorney in a joint federal criminal investigation, conducted by the U.S. Attorney's Office, District of Columbia and the SEC, into alleged misappropriation of funds of a large foreign public company and market manipulation of the securities of several small U.S. public companies. Herrick was able to resolve the federal criminal charges against our client through a guilty plea to a single count of obstruction of justice. The client was sentenced to two years of probation, later reduced to one year. Notwithstanding the criminal charges involving the sale of securities, the SEC did not bring charges.

Former Teammates of Lance Armstrong – Department of Justice and USADA Investigation

Herrick represented a professional cycling team, and three of its cyclists, in a criminal investigation by the U.S. Department of Justice (DOJ), and a related investigation by the United States Anti-Doping Agency (USADA), concerning the use of performance enhancing drugs by the riders' former teammate Lance Armstrong. Leveraging our clients' early cooperation in the investigation, we were able to avoid any criminal charges against the cycling team and the riders, and enter into favorable settlements with USADA.

Witnesses – SEC and Department of Justice Investigation into Alleged Securities Fraud Scheme

Successful representation of two former principals of a dissolved hedge fund in an investigation by the US Attorney’s Office and the SEC into a high-profile "pump-and-dump" scheme involving shares in a Bermuda-based reinsurance company and nearly $20 million in alleged illegal profits. The investigation, which led to the criminal indictment of 7 individuals for securities fraud, resulted in no charges against our clients.

Real Estate Developer – NYS Attorney General Investigation Resolved Favorably

Achieved a highly favorable settlement involving no admission of wrongdoing on behalf of a real estate developer and two of its principals in an investigation by the New York State Attorney General into alleged improper lead removal procedures and harassment of tenants. 

Hedge Fund Collapse – SEC Investigation

Representation of the chief operating officer of a $1 billion hedge fund in connection with an SEC investigation into the fund's collapse and liquidation.

Former CEO – SEC Investigation

The former CEO of a major fiber optic company in an SEC investigation of accounting irregularities. After a grueling deposition and an in-depth Wells Submission, the SEC determined not to pursue any action against our client.

Private Company Officers – SEC Investigation

Representation of officers of a non-public company in an SEC investigation of the company's unregistered offerings. The SEC alleged that the offerings violated various securities laws, but we convinced the SEC's New York Regional Staff to recommend that charges not be brought against these individuals.

Brokerage Branch Manager – NASD Investigation

Representation of the branch manager of a regional brokerage firm in an NASD regulatory investigation into improper market timing activities that allegedly occurred in the branch office. No charges were brought against the branch manager.

National Exchange Department Head – SEC Investigation

Representation of a department head of a national exchange's regulatory division in an SEC investigation into the exchange's failure to enforce its member surveillance program and filing false records with the SEC. The former department head received a cease-and-desist order with no monetary penalties assessed against him.

Securities Broker – Forgery Investigation

Representation of a broker in an NYSE regulatory investigation alleging that the broker forged managerial signatures on new accounts forms and disposed of original employer documents. The broker received an admonition letter in lieu of an enforcement proceeding being brought against him.

Trader – FINRA Investigation

Representation of a former trader at a national retail brokerage firm in a FINRA regulatory investigation into charges of front-running one of the firm's customers.

Investment Banker – FINRA Proceeding

Representation of a former employee of a major investment bank in a FINRA regulatory proceeding on charges that he misappropriated funds from his employer by improperly submitting personal expenses as business-related expenses.

Private Company – Political Misuse Investigation

Representation of a private company in connection with a state Attorney General's investigation into whether a former governor improperly used the company to engage in "dirty tricks" against a political rival.

Securities Trader/Broker-Dealer – Investigations

The principal of a securities trader/broker-dealer in connection with investigations by the New York State Attorney General and the SEC into mutual fund trading practices including market timing and late trading.

Medical Device Company Executive – Grand Jury and Regulatory Investigations

Represented a medical device company's former Vice President of Sales in parallel federal grand jury and Health and Human Services Department investigations of alleged pay-offs to doctors.

Manufacturing Company Executive – Internal Investigation

Represented the former Executive Vice President of a large manufacturing company in an internal investigation of alleged materials theft.

Outlet Mall Developer – Regulatory Investigation

Representing the developer of a New York City outlet mall in an investigation into whether the Empire State Development Corporation’s financial support for economic development projects has been influenced by developer political contributions.

Accounting Firm – SEC Investigation into Accounting Irregularities

Represented a regional accounting firm as a witness in an SEC investigation into accounting irregularities at a publicly traded internet consumer products company.

International Diamond Manufacturer – Racketeering and Money Laundering Claims against European Banks

Representing an international manufacturer and distributor of diamonds in connection with global investigations and multijurisdictional cases to recoup the loss of stolen diamond sales proceeds. Herrick was involved in multiple lawsuits worldwide against a range of domestic and foreign insurers and banks, helping to recover in excess of $100 million. We are currently representing the client in a federal lawsuit alleging racketeering activity against two additional European banks related to the theft of $135 million of sales proceeds belonging to the company. The case is proceeding in the Southern District of New York after we prevailed on appeal to the Second Circuit vacating a dismissal on forum non conveniens grounds.

Retail Brokerage Branch Manager – NASD Charges

Successful defense of a branch manager of a national retail brokerage firm. Following a hearing, the hearing panel dismissed all of the NASD's charges, including allegations of supervisory failures. The dismissal was upheld on appeal by the NASD to the NASD's National Adjudicatory Council.

Retail Brokerage – Federal Investigation

Representation of a national retail brokerage firm in a joint U.S. Attorney/SEC investigation of illegal "frontrunning" trading activity.

Pharmaceutical Company – Insider Trading Investigation

Represented the senior management of a pharmaceutical company in an SEC insider trading investigation of a PIPE offering.

Financial Services Company – Internal and Grand Jury Investigations

Conducted an internal investigation for a major international financial services corporation concerning allegations that company employees had provided false customer account information to another financial institution. We also represented the company in a related New York state grand jury investigation.

Boards of Directors – Internal and SEC Insider Trading Investigations

Conducted an insider trading investigation on behalf of the boards of directors of two affiliated publicly owned computer software companies, and represented them in a related SEC investigation.

International Investigation – Market Manipulation

Representation of a foreign citizen in connection with an indictment by the U.S. Attorney’s Office and an SEC investigation alleging market manipulation of multiple OTC securities in the U.S. markets via the internet.

Stock Brokers – FINRA Investigation

Representation of multiple stock brokers of a national retail brokerage firm in a FINRA investigation into various sales practice violations.

Former Bank Directors – Favorable Resolution of FDIC Investigation

Herrick negotiated a favorable settlement on behalf of three directors of a failed New York City community bank, resolving claims by the FDIC that the directors had failed to exercise due care in their oversight of the bank's loan portfolio.

Private Collector – Stolen Art Recovery

Represented a private collector in recovering a collection stolen from an art storage facility and dispersed throughout the United States, and beyond, including Japan. We worked with the FBI Art Crime Task Force and the U.S. Attorney's Office for the Eastern District of Missouri, helping to recover the majority of the collection. The thieves were caught, prosecuted and jailed.

Broker Dealer – SEC Investigation

Represent a broker dealer in connection with an SEC insider trading investigation.

SEC Matter – Securities Fraud Allegations

Representation of a business executive in an SEC civil securities fraud matter alleging participation in a pump-and-dump scheme involving two penny stocks.

Business Executive – Parallel Criminal and Civil Insider Trading Investigations Settled Favorably

Herrick successfully represented a business executive in parallel criminal and civil insider trading investigations conducted by the U.S. Attorney's Office for the Eastern District of New York and the SEC, in connection with allegations that our client and four other defendants used illegal tips to trade in the stock of a company prior to it being taken private in a multibillion dollar deal. Herrick was able to resolve the SEC claims with a favorable settlement which involved no admission of wrongdoing, and obtained no prosecution with the U.S. Attorney's Office.

DataTreasury and Company Executives – Defense of $185 Million ‘Pay to Prosecute’ Lawsuit

Herrick and co-counsel negotiated a favorable settlement for DataTreasury and two of the company's executives, bringing to an end a $185 million dollar lawsuit filed by Long Island attorney Robert Del Col and his client Ted Doukas against multiple defendants, including our clients and former Nassau County District Attorney Kathleen Rice. The complaint, filed by plaintiffs who had been involved in a dispute over patent royalties with DataTreasury, alleged that the plaintiffs' arrest and indictment for grand larceny had been motivated by campaign contributions made by the company to the Nassau County District Attorney's office. Following the court's dismissal of several of the plaintiffs' claims, this litigation was settled in an agreement that contemplated no admission or finding of wrongdoing by any defendant and for a small fraction of the damages claimed.

Investment Advisor – Successful Conclusion to SEC Investigation and Wells Notice Alleging Fraud Against Senior Executive – Stanford Ponzi Scheme

We represented a senior executive investment advisor formerly associated with the now infamous Stanford Financial Group in a Securities and Exchange Commission investigation. In 2011, the SEC issued a Wells Notice concerning our client's alleged fraudulent disclosures and affirmative misrepresentations in the sales of Stanford International Bank CDs, allegedly a massive Ponzi scheme. After making two submissions in response to the Wells Notice and an oral presentation to the staff at the SEC's Fort Worth office, we successfully persuaded the SEC to issue a no-action letter stating that it will not bring any charges against the client.

Branch Manager – FINRA Investigation

Representation of the branch manager of a national retail brokerage firm in a FINRA investigation involving the failure to supervise in connection with a major defalcation from a customer account by an administrative employee.

Executive – SEC Investigation

Representation of an executive of a national retail brokerage firm in a joint U.S. Attorney and SEC action alleging fraud in connection with securities lending.

SEC Matter – Insider Trading

Represented a defendant charged with insider trading by the Securities Exchange Commission.

Robert W. Seavey – Victory in $500 Million RICO Case

Representation of Robert W. Seavey, real estate developer and owner, in obtaining a U.S. District Court summary judgment dismissing a $500 million RICO case. The suit also named members of his family, the management company and accounting firm. The court found that the plaintiffs and their forensic accounting firm had failed to find any evidence supporting their claims. The decision appears to be the first New York decision that found that the federal bank fraud statute cannot serve as a predicate act in a RICO case when the plaintiff is not a financial institution. All state court claims were dismissed.

NYSE Company – Internal Investigation

Representation of the Audit Committee of a New York Stock Exchange listed company to conduct an internal investigation of whistleblower claims brought by a former officer alleging that certain officers and directors had committed accounting fraud and violated the Sarbanes-Oxley Act.

FINRA Investigation – Falsification of Records

Represented four account executives in an FINRA investigation alleging the falsification of records during a raiding dispute.

Financial Service Firm – Insider Trading Investigation

Herrick successfully represented a financial services firm and key executives in a joint SEC and US Attorney's insider trading investigation related to the purchase of shares in multiple pharmaceutical companies prior to announcements of multibillion mergers. The investigation concluded with no action taken against our clients.

International Insurer – FINRA Arbitration

Representation of a major international insurer in a FINRA arbitration brought by a group of customers alleging improper selling- away by an account executive.

International Insurance Carrier – Indebtedness Recovery

Represented international insurance carrier in its attempts to recover a two million dollar indebtedness from a former account executive.

Real Estate Executive – Public Corruption Prosecution

Representation of a business executive charged by the U.S. Attorney's Office for the Southern District of New York with conspiring to bribe a public official and money laundering. Resulted in the U.S. Attorneys' Office determining to drop all charges against our client.