Securities Matters 

Collora LLP has earned an outstanding reputation for defense work involving civil and criminal government enforcement of securities laws.

Our firm has frequently represented executives, advisors and traders in administrative hearings before the Securities and Exchange Commission and the Massachusetts Securities Division, as well as in enforcement actions brought in state and federal court. Our lawyers are also experienced in dealing with the State’s Attorney General and the U.S. Attorney’s office regarding alleged securities law violations.

When the state or federal government initiates an investigation or enforcement action, clients know that Collora LLP is prepared to respond immediately and prudently for them. Our lawyers know how to deal with government discovery requests, assert privileges, coordinate joint defense teams, and sort through thousands of complex financial and securities-related documents quickly and effectively.

The following shows the kinds of clients we represent in government enforcement actions related to securities, as well as the industries of our clients, the legal issues we have handled and some of the results that we have obtained. (For information about our experience with other government enforcement matters, see the links at the bottom of this page.)

Clients

Collora LLP has represented a variety of clients in inquiries, investigations and enforcement actions related to securities laws, including but not limited to:

  • Corporations and Partnerships
  • Banks and Financial Services Companies
  • Chief Executives, Officers and Managers
  • Brokers and Traders
  • Shareholders/Investors
  • Advisers and Consultants

Industries

Our lawyers have represented clients in securities matters related to a variety of industry sectors, including but not limited to:

  • Banking and Financial Services
  • Hedge Funds, Mutual Funds and Other Investment Funds
  • Real Estate/Housing Development
  • Technology

Issues

We have successfully dealt with a variety of issues associated with investigations and enforcement actions pertinent to securities laws, including but not limited to the following:

  • Suitability of investments
  • Churning of investment accounts
  • Collateralized debt obligations and mortgage-backed securities
  • Failure to disclose investigations or other material events
  • Failure to follow internal compliance procedures
  • Failure to supervise traders
  • False or deceptive disclosures and registration statements
  • Fraud
  • Insider trading
  • Market manipulation
  • Market timing, parking and “sticky funds” allegations
  • Options backdating
  • Penny stock frauds
  • Private offering issues
  • Proper charging of rents, expenses and capital items to housing projects
  • Revenue recognition practices
  • Selling away allegations
  • State and federal securities regulations

Results

The following summaries are a representative sampling of results we have produced for our clients in matters involving civil and criminal government enforcement actions related to securities laws.

  • Successfully defended international investment bank serving as a financial advisor during investigation by the Massachusetts Securities Division triggered by a large corporate merger. No enforcement proceedings were commenced and the merger was consummated.
  • Successfully defended international investment group in trial court action concerning alleged violations of the state securities act in connection with sales of certain investment products, such as collateralized debt obligations and mortgage-backed securities.
  • After conducting internal investigation into revenue recognition practices for the audit committee of a technology company, successfully represented the company in a related SEC investigation thereafter with no criminal charge or material liability to report.
  • Successfully represented several investment company executives who received Wells notices from the government. Our clients avoided sanctions as a result of persuasive responses to those notices.
  • Successfully represented outside directors of hedge funds who were subject to inquiries from the Massachusetts Securities Division. No charges were issued.
  • Successfully represented two of five defendants charged with market-timing violations. Our clients, two brokers, allegedly circumvented internal controls put in place by their mutual fund employer, and they served no jail time.
  • Successfully represented a controller in federal probe involving alleged securities frauds committed by six individuals. Persuaded U.S. Attorney that indictment of our client was not proper, while four of the other five individuals were convicted.
  • Successfully represented two investment professionals who worked for major mutual fund company in government probe regarding gifts and gratuities that allegedly violated conflict of interest and fidelity rules.
  • Successfully represented investment adviser group in probe by U.S. Attorney and the SEC into whether the advisers knew or should have known that an investment was fraudulent. Avoided any charge and any trial or publicity with a negotiated civil restitution settlement.
  • Achieved favorable settlement of allegations of illegal gifts and gratuities to hedge fund managers for prime broker client.

For more information about our experience with other kinds of government enforcement matters, click on any of the pertinent links below.