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, both domestic and foreign, prior to announcements of multibillion dollar 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.
