Broker-Dealer – FINRA Arbitration

Represent an investment bank and broker dealer in a FINRA arbitration alleging the wrongful withholding.

Senior Trader – FINRA Investigation

Represent a senior trader of a financial institution in a FINRA investigation alleging market manipulation.

Executive – Internal Investigation

Represent the CEO of a wealth management firm in an internal investigation into selling away and improperly executing client documentation.

Broker – FINRA Investigation

Represent a broker in a FINRA investigation into improperly soliciting investments away from the firm.

Executive – Fraud Action

Represent a prominent foreign investor in an affirmative fraud action against an alternative energy broker and a related law firm.

Broker and Wealth Manager – Criminal and Regulatory Fraud Investigation

Defend a broker and registered wealth manager in parallel fraud investigations conducted by the U.S. Attorney’s Office for the District of Connecticut, the SEC and FINRA.

Public Company – Investigation of Potential Illegal Short Selling

Retained by public company to investigate potential illegal short selling of company's stock. 

International Broker Dealer – DOJ and SEC Investigations, Federal Trial

Represents major international broker dealer in connection with DOJ and SEC investigations, and federal criminal trial against founder of publicly traded company for, inter alia, creating false earnings to inflate the price of the company’s stock.

Key Figure in “Varsity Blues” Case

Represented key figure in the Government’s investigation of and prosecutions in the college admissions scandal known as the “Varsity Blues” case.

Institutional Trader – Asset Recovery

Representation of institutional trader who was victimized in a Ponzi Scheme in order to recover assets that were defalcated.

Registered Investment Advisory Firm – SEC Investigation

Represented Registered Investment Advisory Firm in SEC investigation into allegations of fraudulent misallocation of trades, also known as “cherry-picking.”  Following year-long representation, including document production and on-the-record testimony, the SEC determined to close the matter with no action taken against the 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. 

Investment Advisor – Department of Justice, SEC Investigations, and 9 State Attorney General Investigations

Represented an SEC registered investment advisor to several private equity funds with over $1.0 billion in assets under management, in connection with investigations of alleged securities law violations by the DOJ, the SEC and state securities regulators.

Madoff Litigation – Filings Against the SEC

We represent a number of victims of Bernard Madoff's Ponzi scheme. In January of 2009, we filed notices of claim with the Securities & Exchange Commission alleging negligence under the Federal Tort Claims Act. The SEC rejected our claims six months later, and on Wednesday, October 14, 2009, we filed the historic and first known lawsuit against the SEC seeking monetary damages under the FTCA, Molchatsky and Schneider v. United States. We were lead counsel on the Molchatsky case and filed two additional cases against the United States on behalf of other Madoff victims. While the Second Circuit ultimately dismissed the action, essentially saying that the SEC had absolute immunity, the case sent a message that Herrick will leave no stone unturned on behalf of its clients. This work led to favorable tax relief legislation for Ponzi scheme victims as well as a complete overhaul of SEC staff policies and procedures.

Australian Public Company – Misrepresentation Against U.S. Financial Institution

Achieved significant settlement on behalf of the former Chief Executive Officer of an Australian public company alleged of misrepresentation against a U.S. financial institution in connection with the sale of securities in certain securitized loans.

Securities Brokers – State Insurance Department Investigation

Representation of more than 275 securities brokers of a number of national retail brokerage firms in proceedings before the NY State insurance department on issues concerning annuity exchanges (regulation 60 violations). We were successful in convincing the department to drop approximately 90% of the cases with no formal action and received favorable settlements in the case of the other 10% of the other advisors.

Financial Consultant – FINRA Arbitration

Representing a senior financial consultant in a FINRA arbitration where certain employees alleged that the firm and the consultant constructively terminated them.

Broker – FINRA Investigation

Represented a terminated broker in a FINRA investigation related to discretionary trading, and a negotiated departure from his firm.

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.

Financial Professionals – FINRA Expungement Proceedings

Representing multiple clients in FINRA proceedings to expunge reportable events from the Central Registration Depository

Multiple Hedge Funds – Federal Investigations

Represented several multi-billion dollar hedge funds in parallel SEC and US Attorney investigations. In many instances, no action or minimal sanctions were achieved.

Broker – FINRA Investigation

Successfully represented a broker in a FINRA investigation into selling away activities; FINRA closed the investigation with no action taken.

Broker Dealer – SEC & U.S. Attorney Investigation

Represented a broker dealer and proprietary trading firm in connection with an SEC insider trading investigation. Succeeded in having no actions brought by either arm of the government.

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.

Asia-based Investors – Favorable Settlement in Insider Trading Case

Represented two Asia-based investors indicted and sued in insider trading cases. Succeeded in preventing extradition and having all SEC and criminal charges dropped in a very favorable settlement for our client.

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. 

Investment Bank – Restrictive Covenant Dispute

Represented a boutique investment bank in the pre-litigation resolution of a dispute with two former executives believed to have breached their employment agreements by misappropriating confidential information and soliciting clients after resigning their positions at the firm to join a direct competitor. 

Financial Advisor – FINRA Customer Claim Investigation

Represented a veteran financial advisor in a FINRA investigation into customer claims that the client recommended unsuitable investments and maintained an overly concentrated account resulting in millions of dollars in damages.  FINRA closed the investigation with no action taken against our client. 

Wealth Management Division – Closure of FINRA Sales Practice Investigation and Dismissal of Related Customer Arbitration

Successfully represented the wealth management division of a major international bank, obtaining the closure, with no further action, of a FINRA investigation into alleged sales practice violations and the dismissal of a related customer arbitration alleging unsuitable investments in structured products.

Inter-Dealer Brokerage Firm – $500 Million Raiding Case

Represented the U.S. affiliate of a billion-dollar inter-dealer French brokerage firm in a large "key employee raiding case" brought by a competitor whose stock market valuation declined 24% (approximately $450 million) on the day following our client’s hire of approximately 20 of its credit derivatives brokers and employees. Following an intense oral argument by Herrick and other firms aligned with our client, a New York Supreme Court denied the plaintiff’s motion for a temporary restraining order and later denied a motion for preliminary injunction in rulings which allowed the subject employees to work for our client. The dispute then moved to a FINRA arbitration where we defended hundreds of millions of dollars in claims. After more than 240 hearing sessions, the matter was fully settled and all claims withdrawn.

Investors – Resolution of Fraud and Breach of Contract Claims

Represented a group of investors against foreign international bank alleging fraud and failure to detect that the approved money managers were engaging in a Ponzi scheme. Negotiated a favorable settlement involving the payment of significant monetary damages on behalf of a New York limited partnership to resolve allegations of fraud and dissipation of family trust assets against a major offshore bank and international investment advisors. 

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.

Favorable Resolution Negotiated in FINRA Customer Arbitration Alleging Sales Practice Violations

Herrick successfully defended a leading investment banking and brokerage firm in a FINRA arbitration initiated by the beneficiary of an estate seeking to hold our client liable for the alleged misconduct of the estate's trustees, including alleged defalcation, in connection with significant losses incurred by a brokerage account opened on behalf of the estate. Herrick was able to negotiate an extremely favorable settlement involving no admissions of wrongdoing or further disciplinary actions by FINRA. 

Favorable Resolution in FINRA Arbitration Initiated by Former Managing Director

Herrick successfully defended a midmarket investment bank and brokerage in a FINRA arbitration initiated by a former Managing Director who alleged that our client had wrongly denied him commissions on deals in which he claimed to have been involved. The parties ultimately entered into binding mediation where virtually all claims against our client were dismissed and the matter was resolved with a minimal settlement that was a small fraction of the amount initially claimed.

Broker-Dealer – FINRA Employment Arbitration

Represented a broker-dealer in a complex employment arbitration brought by six former employees seeking over $10 Million in collective damages. This FINRA arbitration proceeded for 60 sessions, including 32 hearing days, and resulted in a virtually complete defense verdict for the firm, including for attorneys' fees. The award was confirmed in its entirety by the Southern District of New York.

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, both domestic and foreign, prior to announcements of multibillion dollar mergers. The investigation concluded with no action taken against our clients.

Senior Investment Banker – SEC/FINRA Investigations

Represent a senior investment banker in parallel SEC and FINRA investigations relating to allegations of fraud and misrepresentation in connection with the sale of private equity securities.

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.

Senior Account Executive – FINRA Investigation

Represent an account executive in a FINRA investigation alleging sales practice violations, selling away and paying non-licensed persons transactional based compensation. 

FINRA Arbitration

Representation of a national broker dealer in an arbitration claiming fraud and misrepresentation in the sale of private placements.

FINRA Investigation – Failure to Supervise

Representation of a major broker dealer investigated by FINRA for failure to supervise brokers in connection with the sale of speculative securities.

Senior Broker – FINRA Investigation

Representation of a registered senior broker in a FINRA investigation into possible selling-away activities.

Madoff Litigation – SIPC Trustee Actions

Representation of Madoff victims named as defendants in actions filed by the SIPC Trustee to recover monies withdrawn from their Madoff securities accounts. Those actions, which are commonly referred to as "clawback" claims, are before the Bankruptcy Court for the Southern District of New York.

Broker-Dealer – Sales Practice Investigation by FINRA

Successfully negotiated a favorable settlement on behalf of a broker-dealer in a sales practice investigation initiated by FINRA concerning allegations that the firm made false and/or misleading representations to customers in connection with the sale of certain mortgage backed securities.

FINRA Arbitration – Sexual Discrimination Claim

Representation of a regional broker dealer in a claim asserted by a former account executive alleging the firm had engaged in sexual discrimination and failed to pay certain bonuses and other compensation.

Employee Claim

Representation of a regional broker dealer in a claim asserted by a former research analyst alleging that the firm wrongfully withheld certain bonus and other transactional compensation. 

Philadelphia Stock Exchange and FINRA Investigation

Representation of a regional brokerage firm in a FINRA and Philadelphia Stock Exchange investigation into payment of transaction based compensation to unregistered persons in numerous violations of the just and equitable principles of trade.

FINRA Investigation

Representation of a registered representative of a major broker dealer in a FINRA investigation into mismarking of trade tickets and unsuitable trading. After successfully filing a Wells submission, the matter was ultimately dropped and the client received no formal discipline.

SEC Matter – CEO of Broker Dealer Investigated for Fraud

Representation of the Chief Executive Officer of a significant broker dealer in a U.S. Securities and Exchange Commission investigation regarding alleged misrepresentations in the offering of private placement interests, and responding to an SEC Wells Notice. The matter was ultimately favorably resolved.

Favorable Resolution to FINRA Customer Arbitration

Herrick successfully defended a regional broker dealer in a FINRA customer arbitration seeking both compensatory and punitive damages in connection with alleged fraud and misrepresentation related to the sale of publicly traded securities and private placements. We negotiated a settlement for a fraction of the initial claim, resolving the matter with no further disciplinary actions against our client.