Public Company – Investigation of Potential Illegal Short Selling
Retained by public company to investigate potential illegal short selling of company's stock.
Retained by public company to investigate potential illegal short selling of company's stock.
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.
Represented key figure in the Government’s investigation of and prosecutions in the college admissions scandal known as the “Varsity Blues” case.
Representation of institutional trader who was victimized in a Ponzi Scheme in order to recover assets that were defalcated.
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.
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.
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.
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.
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.
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.
Representing a senior financial consultant in a FINRA arbitration where certain employees alleged that the firm and the consultant constructively terminated them.
Represented a terminated broker in a FINRA investigation related to discretionary trading, and a negotiated departure from his firm.
Successfully represented an executive in a New York State Attorney General investigation into financial improprieties and conflicts of interest.
Representing multiple clients in FINRA proceedings to expunge reportable events from the Central Registration Depository
Represented several multi-billion dollar hedge funds in parallel SEC and US Attorney investigations. In many instances, no action or minimal sanctions were achieved.
Successfully represented a broker in a FINRA investigation into selling away activities; FINRA closed the investigation with no action taken.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Representation of a business executive in an SEC civil securities fraud matter alleging participation in a pump-and-dump scheme involving two penny stocks.
Represent an account executive in a FINRA investigation alleging sales practice violations, selling away and paying non-licensed persons transactional based compensation.
Representation of a national broker dealer in an arbitration claiming fraud and misrepresentation in the sale of private placements.
Representation of a major broker dealer investigated by FINRA for failure to supervise brokers in connection with the sale of speculative securities.
Representation of a registered senior broker in a FINRA investigation into possible selling-away activities.
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.
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.
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.
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.
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.
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.
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.
Defended broker dealer in a FINRA regulatory investigation alleging that a former analyst made misrepresentations about high-growth securities in multiple firm research reports.
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.
Representation of a regional brokerage firm in multiple investor claims alleging fraud and misrepresentation in connection with a failed private placement.
Represented a defendant charged with insider trading by the Securities Exchange Commission.
Represented a major international insurance company in breach of contract dispute.
Representation of a leading independent broker-dealer against claims of defamation and tortious interference asserted by a competitor firm.
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