Our firm has substantial experience in representing broker-dealers and other clients who participate in the securities markets, including buy-side entities and individuals (such as hedge funds, alternative investment funds, and their representatives) that have important relationships with broker-dealers. We have handled regulatory examinations, inspections, civil and criminal investigations, enforcement actions, and other proceedings involving the US Securities and Exchange Commission (SEC), US Department of Justice (DOJ), Congress, US Commodity Futures Trading Commission (CFTC), Financial Industry Regulatory Authority (FINRA), other securities and futures self-regulatory organizations, and state regulatory agencies. We also have experience conducting internal investigations and independent reviews in response to regulatory issues (or as part of regulatory settlements), defending securities litigation, and counseling on compliance, crisis management, corporate governance, regulatory filings, broker recruitment, and securities and market matters.
In the course of our matters, we have dealt with issues arising out of transactions and business conduct concerning stocks, bonds, futures, options, derivatives, and other financial products and instruments. Our success is based on creative thinking, diligence, and an in-depth knowledge of how the markets operate and the government regulates.
Our representation of broker-dealer and market participant clients with respect to examinations, enforcement inquiries, internal reviews, and/or compliance counseling has included, among other things, matters involving:
- Alleged market manipulation, insider trading, fraudulent representations and omissions, fraudulent stock promotion schemes, Ponzi schemes, and other alleged fraud;
- Alleged unauthorized trading, front-running, prearranged trading, improper and negligent execution of trades, short sale violations, and other trading issues;
- Auction rate securities;
- Books and records;
- Collateralized debt obligations;
- Communications with customers and the public;
- Credit default swaps;
- Forms U4, U5, BD, and other disclosures;
- IPO and secondary offering allocations;
- Margin requirements;
- Market maker requirements;
- Net capital and customer protection;
- Outside business activities and private securities transactions;
- Provision of gifts and entertainment;
- Registration of broker-dealers, representatives, and principals;
- Relationships between prime brokers, executing brokers, and customers;
- Research analysts and research reports; and
- Supervisory and compliance systems, written supervisory procedures, internal controls, and alleged failure to supervise.
We also have extensive experience defending arbitrations involving customer claims and employee disputes for broker-dealer clients and others the securities industry. Please refer to the arbitration and mediation page for a description of our work in this area.