Broker-Dealer Matters

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 SEC, DOJ, Congress, CFTC, 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) and counseling on compliance, regulatory filings, broker recruitment, and securities and market matters.

Our engagements have included 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.

In addition, we have extensive experience defending arbitrations involving customer claims and employee disputes for broker-dealer clients and others in the securities industry. These matters have included allegations of unsuitability, churning, failure to hedge, failure to supervise, fraud, breach of fiduciary duty, limited partnership failures, wrongful termination, compensation disputes, and a variety of other claims. Our arbitration clients have included both full service and discount brokers, clearing firms, investment advisers, hedge funds, and investment banks. We have tried arbitrations before FINRA, NASD, NYSE, AAA, JAMS, and the PCX throughout the United States.

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