Public Company – SEC Investigation in Connection with IPO

Represented a publically traded computer software company in an SEC investigation into the company’s assets and the funds used to purchase shares in the company’s initial public offering.

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.

Commercial Bank – All Claims Dismissed in Check Fraud Litigation

Representation of the U.S. arm of an international bank in the successful defense of claims arising out of a massive check-kiting scheme by employees of an insurance company depositor. When the insurance company failed, a court-appointed receiver sought to hold the bank liable for over $250 million in losses resulting from the insurance company’s failure. The District Court dismissed the claims after discovery, and the Second Circuit affirmed the dismissal.

Corporate Director – Dismissal of Securities Class Action Complaint

The former CEO of a publicly owned telecommunications company in two securities fraud class actions stemming from the company's bankruptcy in the wake of the dot-com bubble burst. 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 on the grounds that plaintiffs were on inquiry notice of a potential fraud long before they asserted their claims, and dismissed the action as barred by the statute of limitations. We were able to obtain a settlement of the entire matter on terms that were very favorable to our client.

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.

Brokerage Firm President – SEC Action

Representation of the former president and owner of a brokerage firm in post-trial proceedings following an SEC lawsuit involving the alleged employment of a barred person.

Medical Device Company Executive – Grand Jury and Regulatory Investigations

Representation of 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.

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.

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.

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.

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.

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.

Witness – SEC Investigation into Accounting Irregularities

Representing a regional accounting firm as a witness in an ongoing 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

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

Investment Advisor – SEC Investigation

Representation of an investment advisor in an SEC investigation of the "cherrypicking" of trades.

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.

Manufacturing Company Executive – Internal Investigation

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

Labor Union – Ethical Practices Counsel

Advised the Ethical Practices Counsel of a major international labor union concerning allegations of organized crime influence and corruption.

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.

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.

Broker Dealer – SEC Investigation

Representation of 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.

Credit Services Company – New York Attorney General Investigation

Represented credit services company in connection with investigation by the New York State Attorney General's Office, Consumer Frauds Bureau

Commodities Trader – Felony Charges over Alleged ‘Wash Trades’

A veteran commodities trader against potential federal felony charges related to alleged “wash trades” executed on behalf of a customer suspected of having ties to Russian organized crime. Obtained a non-prosecution agreement with the U.S. Attorney’s Office for the Eastern District of New York.

Manufacturing Company Executive – Grand Jury Investigation

Represented a manufacturing company executive who was the target of a federal grand jury investigation into alleged violations of the Arms Export Control Act. Convinced the government not to charge the client.

Food Products Company – FDA Investigation

Represented a national food products company in an FDA investigation of food safety issues.

Internationally Recognized Art Gallery – Internal Investigation

Conducted an internal investigation on behalf of an internationally recognized art gallery concerning the authenticity of certain paintings bought and sold by the gallery.


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.

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, resulting in a far lower sentencing guidelines range than would have resulted had the client pled to multiple securities fraud charges, as the Department of Justice was initially contemplating. 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.

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.

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.

Former MF Global Officers – Regulatory Investigations and Civil Actions

Former MF Global officers in investigations conducted by the Department of Justice, the CFTC and the SEC as well as civil and class action lawsuits filed in the wake of the bankruptcy and collapse of the company. Among our many successes, Herrick secured the dismissal of the CEO who preceded Jon Corzine from the securities class action, and the dismissal of five officers and employees from the commodity class action.

Brokerage Firm – FINRA Customer Trading/Anti-Money Laundering Examination

Herrick represented a brokerage firm in a Financial Industry Regulatory Authority examination of customer trades in foreign bonds and the firm's anti-money laundering procedures. The investigation resulted in no charges against our client.

Witness – SEC Action Charging Kickbacks and Overvaluing of Assets

Herrick represented a key witness in an SEC lawsuit charging kickbacks, failures to disclose and overvaluing of assets involving the owners of a registered investment adviser which claimed to have had over $130 million in assets under management. The investigation resulted in no charges against our client.

Real Estate Company – Grand Jury Investigation

Representation of a prominent real estate development company in a federal grand jury investigation of political campaign contributions.

SEC Matter – Insider Trading

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

Canadian Investor – SEC Insider Trading Action Settled with No Admission of Wrongdoing

Herrick represented a Canadian investor in an SEC insider trading lawsuit filed in the Southern District of New York alleging that our client received stock tips from a business associate with access to insider information on upcoming mergers and acquisitions. After intensive negotiations involving individuals from the top echelon of the SEC's Division of Enforcement in Washington, we were able to reach a settlement resolving the charges against our client without any admissions of wrongdoing. No criminal charges were ever brought.

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

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