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Category Archives: Law Firms and Lawyers

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Do you really need a reason why not to provide your client with a personal email address

Posted in Books and Records, Broker-Dealer Regulation, Compliance and Supervision, Financial Industry Trends, FINRA Compliance, Investment Adviser Regulation, Law Firms and Lawyers, Public Customer Arbitrations

Not too long ago, I tried a case that had, among other issues, the improper use of the advisor’s personal email account. That improper use serves as a valuable lesson of what can go wrong when you deviate from using the firm approved email. The client emailed complaints about the handling of the account to… Continue Reading

Convicted Inside Trader Cannot Sue Former Counsel

Posted in Insider Trading, Law Firms and Lawyers

The U.S. District Court for the Southern District of New York dismissed a New York law malpractice and fraud claims by convicted inside trader Winifred Jiau against her former attorney.  See Jiau v. Hendon, http://www.bloomberglaw.com/public/document/Jiau_v_Hendon_Docket_No_112cv07335_SDNY_Sept_28_2012_Court_Docket. Prosecutors contended that in her role as an employee of an expert network company, Jiau obtained inside information about public… Continue Reading

So Who Is My Lawyer Anyway?

Posted in CFTC Enforcement, FINRA Enforcement, Internal Investigations, Law Firms and Lawyers

A firm faced with a regulatory investigation should hire outside counsel to bring objective analysis to the situation. Although it may seem simple, the question that must first be addressed is who the lawyer represents. If the firm itself is the subject of the inquiry, then the firm needs representation. However, that same lawyer should… Continue Reading


Posted in Federal and State Criminal Activities, Law Firms and Lawyers, SEC Enforcement

We routinely report enforcement actions directed against lawyers because it simply never goes away. Attorneys are a major target for federal and state securities regulators.  Regulators salivate over “getting” attorneys, because they receive notoriety and money from the attorney’s malpractice carrier for investors.  Additionally, the SEC’s new cooperation initiative may result in even more enforcement… Continue Reading

Investors, Entrepreneurs and Business Leaders: Save the Date for Fox’s Own, Michael Harrington, at IMPACT 2013 Venture Summit!

Posted in Law Firms and Lawyers

Fox Rothschild is proud to be the host sponsor of IMPACT 2013 Venture Summit – the most established venture summit in the Northeast. This year’s conference will be held October 22 and 23 at the Ritz-Carlton, Philadelphia and Crystal Tea Room.  As the premiere event of the Philadelphia Alliance for Capital and Technologies (PACT), IMPACT… Continue Reading

Law Firms Cannot Ignore Clients Who May Be Engaged in Ponzi Schemes

Posted in Federal and State Criminal Activities, Law Firms and Lawyers, Ponzi Schemes, SEC Enforcement

Regulators seem to believe that lawyers and their law firms act like ostriches when it comes to their clients and Ponzi schemes.  For example, a law firm paid $25 million to settle malpractice claims over legal services rendered to certain hedge funds and related entities controlled by a Ponzi Scheme artist, Arthur Nadel.  See SEC v.… Continue Reading

Law Firm Must Defend Claims It Aided Client’s Securities Violations

Posted in Law Firms and Lawyers, Securities Litigation

A California federal court refused to dismiss negligence and other state law claims against a law firm for allegedly helping its client commit federal securities law violations.  See Donell v. Nixon Peabody, LLP, C.D. Cal., No. CV 12-04084 DDP (JEMx), 9/5/12. In this suit brought by the receiver of a defunct investment firm, the court rejected the… Continue Reading

You May Be Able to Utilize Alternative Service in Securities Actions

Posted in Law Firms and Lawyers, Securities Litigation

In an interesting decision arsing out of a securities fraud action, plaintiffs were allowed to serve a non-American defendant corporation’s chief executive officer – a citizen of Canada – by alternative means.  See In re GLG Life Tech Corp. Securities Litigation, S.D.N.Y., 11 Civ. 09150 (KB) (GWG), 11/9/12. The court indicated such service would provide notice to… Continue Reading

The Proper Care and Feeding of Experts in Securities Matters

Posted in Law Firms and Lawyers, Securities Litigation

As many regular blog readers know, I have participated as an expert witness before.  It is fascinating to share with our readers other epxert experiences as well.   Nonetheless, a number of issues relating to experts in securities cases have arisen over the last year.  In particular, many cases involve the threshold question as to if it is possible… Continue Reading

Lawyers and Issuers Really Need to Listen to SEC Comments Regarding Cyber Security

Posted in Capital Formation, Cyber-Security, Law Firms and Lawyers

The SEC’s Division of Corporation Finance has indicated that lawyers for issuers and issuers themselves should focus on and respond to the SEC’ Staff’s comments during the corporate filing review process.   The SEC’s Staff has seen that issuers and their counsel are not necessarily responding completely to comments.  The SEC Staff believes that this has caused the process… Continue Reading

Beware of the Rogue Stockbroker

Posted in Broker-Dealer Regulation, Law Firms and Lawyers, Registered Representatives, Securities Litigation

We take a step back and speak directly to attorneys for a change, in particular, those lawyers who may recommend stockbrokers to their clients.  In New York, attorneys are subject to the tort of negligent referral if they were to refer such a stockbroker, who then causes damage to the client.  Consequently, prior to making any such… Continue Reading

Jeffrey M. Pollock Elected to The American Law Institute

Posted in Law Firms and Lawyers

Please join us in congratulating partner Jeffrey M. Pollock who was recently elected to The American Law Institute (ALI) – a nonprofit, independent organization dedicated to producing scholarly work that clarifies, modernizes and improves the law. New members are elected by current members and selected on a number of criteria, including high character and ability… Continue Reading

A Very Comical Legal Brief

Posted in Law Firms and Lawyers

As regular readers know, we deal with some pretty wonky securities law issues here at the Securities Compliance Sentinel.  It’s some serious stuff – sentinels are rarely irreverent fellows.  Speaking of sentinels, attorney Bob Kohn filed a rather novel amicus brief in the Justice Department’s lawsuit against Apple and some book publishes which alleges price fixing… Continue Reading

We Need Your Help

Posted in Law Firms and Lawyers

To our loyal followers, The ABA is compiling its list of top blogs.  We wanted to make you aware of the link, and hope you will consider us when responding.  Here is the link:  http://www.abajournal.com/blawgs/blawg100_submit/.  The deadline for submission is September 7, 2012. Thanks so much. Securities Compliance Sentinel

Cockroaches, the NFL and Presidential Statistics. . . Another Silly Friday Prediction

Posted in Law Firms and Lawyers

Yes, this blog is quite different than what you are used to reading, but it is a Friday in August so please take it in that vein.  Here goes. Undoubtedly, many know the securities industry loves to use statistics.  Statistics are used for everything, including, among other things, to make predictions.  However, the securities industry is not alone in using statistics to predict… Continue Reading