DOCSLIB.ORG

Looking Forward 2021 New Horizons

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Looking Forward 2021 New Horizons LOOKING FORWARD 2021 NEW HORIZONS 2021 SECURITIES REGULATION LAW FIRM OF THE YEAR U.S. News—Best Law Firms NEW YORK WASHINGTON, DC VIRGINIA CHICAGO SAN FRANCISCO Contents 1 A Message from the Chairman 17 Broker-Dealer Advisory & Counseling 2 Firm Updates 18 Independent Monitoring & Independent Consulting 6 Balancing Government Perspective 19 Cybersecurity, Incident Response, & Data Privacy with Business Experience 20 Securities Arbitration & ADR 21 Health Care Fraud Defense & Compliance Counseling PRACTICE AREAS 22 International Advisory 8 Commodities, Futures & Derivatives 10 Regulatory Enforcement Defense FEATURES 11 Securities & Complex Commercial Litigation 23 Innovation Lab 12 FinTech & Blockchain 24 StraDIM 14 Investment Advisory 25 Making a Difference 15 White Collar Defense, Investigations & Compliance Counseling 16 Trading & Markets Counseling A Message from the Chairman I think it is fair to say that 2020 will go down in the record books as a most challenging year. But I am delighted to report that, here at Murphy & McGonigle, we met every challenge with compassion and resolve. And we delivered for our most important constituencies: Our People, Our Clients and Our Communities. In March, we re-engineered our law firm to a fully work-from-home operational model. Our IT and admin teams proved once again that they are the best in the business. We adapted rapidly to changing conditions and continued to deliver world-class service to our clients without missing a beat. We kept faith with Our People by putting their health and safety first. Notwithstanding the economic uncertainties, we chose not to lay off or cut the pay of a single staff member or associate. With various shut down orders in place across the country, we found new avenues to serve Our Communities in a time of great need, including fighting for compassionate release for the most vulnerable among the incarcerated population. We redoubled our commitment to Diversity & Inclusion in a number of ways, including by signing on to the new Mansfield Rule for Midsize Law Firms. In the midst of all the challenges of 2020, we seized opportunities we saw in the marketplace. This is in our DNA. We opened new offices in San Francisco and Chicago this year. We found outstanding partners in Mauricio Beuglemans and Harris Kay to lead the charge in San Francisco and Chicago, respectively. We are gratified by the wonderful reception we have already received from clients. And we look forward to building an All-Star team of legal talent in each of these markets. In June, we celebrated our firm’s Ten Year Anniversary. Ten years ago, we opened our doors with little more than an entrepreneur’s optimism and a few core values. One of those core values was the commitment to maintaining a high bar for talent. I am pleased to say that, after ten years, we have stayed true to those core values. And the results have been beyond anything we could have imagined. We were recently informed by U.S. News & World Report that Murphy & McGonigle has been chosen the “Law Firm of the Year” in Securities Regulation for 2021. We are the first boutique law firm in the country to receive this accolade! It is a remarkable affirmation of our law firm model and those core values to which we all committed when we opened our doors just ten years ago. Most of all we are grateful for Our Clients, who continue to place their trust and confidence in us by calling on our team to handle some of their most complex and sensitive legal matters. We never lose sight of the fact that we must earn that trust and confidence every day. On behalf of all the lawyers and staff at Murphy & McGonigle, we thank you sincerely for your continued support. James A. Murphy Chairman FIRM UPDATES Extending Footprint in U.S. Financial Markets Murphy & McGonigle continued its recent momentum with the opening of two new offices in 2020—in Chicago and in San Francisco. The firm has made significant strides in gaining market share across the U.S. since its founding in 2010, with an ever-growing lineup of financial industry lawyers and a unique law firm platform. The addition of Chicago and San Francisco now provides Murphy & McGonigle with a footprint that includes the most significant financial services markets in the United States. Harris L. Kay CHICAGO Harris L. Kay, a Chicago-based veteran financial services lawyer, joined the firm in August 2020 to serve as managing partner of the Chicago office, which is located at 300 North LaSalle Street. Mr. Kay joined Murphy & McGonigle from the Chicago office of a national law firm. He continues to serve a variety of financial industry clients in securities and commodities regulatory and litigation matters. He counsels industry professionals, including futures commission merchants, introducing brokers, broker- dealers, proprietary traders, investment advisers, commodity pool operators and commodity trading advisers in operational and compliance matters, litigation, and regulatory investigations and enforcement proceedings before government agencies, self-regulatory organizations, and exchanges. Mr. Kay is past chair of the Financial & Investment Services Committee of the Chicago Bar Association, and he is a frequent speaker on various topics related to the securities and futures industries. Mauricio S. Beugelmans SAN FRANCISCO Mr. Beugelmans established Murphy & McGonigle’s first West Coast office, located at 44 Montgomery Street in San Francisco, in July of 2020. His practice focuses on serving financial institutions in securities litigation, arbitration, employment, and regulatory proceedings. Mr. Beugelmans brings over twenty years of litigation and FINRA, CFTC, and SEC regulatory experience from his prior roles as in-house counsel at Morgan Stanley and Charles Schwab, as managing partner of a law firm serving financial institutions, and as a litigation and financial markets partner in a national law firm. Mr. Beugelmans held various leadership roles in Morgan Stanley’s compliance and legal division, including as counsel to Morgan Stanley’s chief compliance officer. He has led hundreds of securities arbitrations, internal investigations, and regulatory proceedings. Following his tenure at Morgan Stanley, he returned to private practice and founded a law firm, serving as the firm’s managing partner for ten years. 2 MURPHY & McGONIGLE Doubling Down on Diversity, Equity, and Inclusion The events in 2020 have dramatically focused the firm's attention on racial and social injustice in our communities. We as a firm have come together to denounce discrimination, in whatever form, and express our support for those who have been subjected to these experiences. Recent events impel us to increase our efforts, particularly with respect to racial and ethnic minorities. Our commitments lie along three pillars: Focusing on Diverse Investing in Developing a Representation Social Justice Diverse Pipeline Mansfield Rule In 2020, Murphy & LFAA In 2020, Murphy & McGonigle External Murphy & McGonigle McGonigle became one of 20 law became a member of the Law Firm continues to be an active member of firms to pilot the inaugural Mansfield Antiracism Alliance (LFAA) and Minority Corporate Counsel Association Rule for Midsize Law Firms. The committed to dedicating resources to: (MCCA) and Leadership Council on Mansfield Rule is a leading industry- • amplify the voices of communities Legal Diversity (LCLD) and participates wide initiative for law firms devoted to and individuals oppressed by racism, in fellowship and intern programs proactively increasing and sustaining • better use the law as a vehicle for directed at diverse attorneys and 1Ls. a diverse and inclusive workforce in change that benefits communities their firms with specific required metrics. of color, and Internal Murphy & McGonigle • promote racial equity in the law and significantly enhanced and formalized Participating firms commit to in government institutions. the professional development program considering at least 30% of historically designed to support attorneys in underrepresented lawyers—women, Pro Bono Murphy & McGonigle has advancing their careers, including lawyers of color, LGBTQ+ lawyers, been honored by the Interfaith Action enhanced opportunities for mentoring/ and lawyers with disabilities—for for Human Rights (IAHR) for the pro sponsorship, credentialing, and a variety of roles, including equity bono legal services of Shareholder business development. partner promotions, senior Lionel Andre, a member of White Collar lateral hires, client pitches and Defense, Investigations & Compliance leadership positions. Counseling Practice on behalf of at-risk, incarcerated prisoners. Facilitating Conversations Members of the firm’s Diversity & Inclusion Initiative lead conversations with industry members, for CLE credit, about obstacles and opportunities for diverse attorneys in the current environment and best practices for promoting positive culture in legal communities. LOOKING FORWARD 2021 3 FIRM UPDATES Murphy & McGonigle named Securities Regulation ‘Law Firm of the Year’ by U.S. News—Best Lawyers Murphy & McGonigle has been named “Law Firm of the Year” for Securities Regulation in the 2021 Edition of U.S. News—Best Lawyers "Best Law Firms." The prestigious recognition is bestowed on only one firm in the United States annually. Murphy & McGonigle is the first boutique law firm to ever be so honored. Recent Winners Years Won Number of Attorneys Murphy & McGonigle 2021 50 Est. 2010 2020, 2017 2000 Sidley Austin 2012, 2011 Est. 1866 Morgan,
Load more

Recommended publications
  • Acid-H1-2021-Report.Pdf
    AGARI CYBER INTELLIGENCE DIVISION REPORT H1 2021 Email Fraud & Identity Deception Trends Global Insights from the Agari Identity Graph™ © Copyright 2021 Agari Data, Inc. Executive Summary Call it a case of locking the back window while leaving the front door wide open. A year into the pandemic and amid successful attacks on GoDaddy1, Magellan Health², and a continuous stream of revelations about the SolarWinds “hack of the decade,” cyber-attackers are proving all too successful at circumventing the elaborate defenses erected against them³. But despite billions spent on perimeter and endpoint security, phishing and business email compromise (BEC) scams continue to be the primary attack vectors into organizations, often giving threat actors the toehold they need to wreak havoc. In addition to nearly $7.5 billion in direct losses each year, advanced email threats like the kind implicated in the SolarWinds case⁴ suggest the price tag could be much higher. As corroborated in this analysis from the Agari Cyber Intelligence Division (ACID), the success of these attacks is growing far less reliant on complex technology than on savvy social engineering ploys that easily evade most of the email defenses in use today. Sophisticated New BEC Actors Signal Serious Consequences Credential phishing accounted for 63% of all phishing attacks during the second half of 2020 as schemes related to COVID-19 gave way to a sharp rise in payroll diversion scams, as well as fraudulent Zoom, Microsoft and Amazon alerts targeting millions of corporate employees working from home. Meanwhile, the state- sponsored operatives behind the SolarWinds hack were just a few of the more sophisticated threat actors moving into vendor email compromise (VEC) and other forms of BEC.
    [Show full text]
  • The Nutshell Studies of Unexplained Death Stephanie Witt
    School of Graduate and Professional Studies 100 Campus Circle, Owings Mills, Maryland 21117 1-877-468-6852 accelerate.stevenson.edu STEVENSON UNIVERSITY FORENSICS JOURNAL VOLUME 4 EDITORIAL BOARD EDITOR-IN-CHIEF Carolyn Hess Johnson, Esq. PUBLISHER Carolyn Hess Johnson, Esq. EDITORS Abigail Howell Stephanie Witt COVER PHOTO Bruce Goldfarb Assistant to the Chief Medical Examiner, Maryland DESIGN & LAYOUT Chip Burkey Cassandra Bates Stevenson University Marketing and Public Relations Office Copyright © 2013, author(s) and Stevenson University Forensics Journal. No permission is given to copy, distribute or reproduce this article in any format without prior explicit written permission from the article’s author(s) who hold exclusive rights to impose usage fee or royalties. FORENSICS JOURNAL Welcome to our fourth annual Stevenson University Forensics Journal. This year, as always, we bring fresh voices and perspectives from all aspects and areas of the field. I am pleased to note that a new section has been added this year, highlighting the process of library research in the vast field of Forensic Studies. Our Stevenson University librarians bring the research pro- cess into the twenty-first century by showcasing a variety of on-line resources available to researchers. Also of note is the connection between our cover photo and the interview conducted with Dr. David Fowler, Chief Medical Examiner for the State of Maryland. Assistant Editor Stephanie Witt joins the Journal as a contributor to explain the fascinating Nutshell Series of Unexplained Deaths. We are privileged this year to have the Honorable Lynne A. Battaglia providing her insights into the Court’s perspective on the prominent role of forensic evidence in modern litigation.
    [Show full text]
  • Behind the “From” Lines: Email Fraud on a Global Scale Ten Cybercriminal Organizations Unmasked
    AGARI CYBER INTELLIGENCE DIVISION REPORT Behind the “From” Lines: Email Fraud on a Global Scale Ten Cybercriminal Organizations Unmasked © Copyright 2019 AGARI Data, Inc. Executive Summary Nigerian Scammers Target American Businesses Over the course of the past 10 months, using responsible active defense “ Since I can't send techniques, Agari captured 78 criminal email accounts, belonging to 10 criminal more money, maybe organizations, and containing 59,652 unique email messages. Agari analyzed the I'm of no use to you contents of these email accounts to investigate the tactics, targets and identities now. I certainly feel of the criminals. And now, that analysis enables stronger defensive strategies and like that could be measures. the deal here...A realtor is coming over What’s more, Agari has used this analysis to warn financial institutions about tomorrow to help accounts being used for criminal activity, and to provide evidence to law me list my house for enforcement. Agari has also warned victims, and in at least once case, quick action sale. I'm talking to an helped a company recover its money. attorney now about how to keep the One of the more interesting findings from this analysis was that while much of the collection agencies high-profile cybersecurity news of the past year has involved state sponsors like away and protect my Russia and North Korea, American businesses and individuals are far more likely to kids. All this time, I'm be targeted by Nigerian scam artists. wondering if I've heard Nigerian scam artists, traditionally associated with implausible get-rich-quick from you for the last schemes and other scams of individuals, have become more sophisticated and time.
    [Show full text]
  • The Complete Idiot's Guide to Starting an Ebay Business, Second Edition
    Starting an eBay Business Second Edition by Barbara Weltman and Malcolm Katt A member of Penguin Group (USA) Inc. Starting an eBay Business Second Edition by Barbara Weltman and Malcolm Katt A member of Penguin Group (USA) Inc. This book is dedicated to all the eBay sellers, present and future, who prove that the entrepreneurial spirit is indomitable. ALPHA BOOKS Published by the Penguin Group Penguin Group (USA) Inc., 375 Hudson Street, New York, New York 10014, USA Penguin Group (Canada), 90 Eglinton Avenue East, Suite 700, Toronto, Ontario M4P 2Y3, Canada (a division of Pearson Penguin Canada Inc.) Penguin Books Ltd, 80 Strand, London WC2R 0RL, England Penguin Ireland, 25 St. Stephen’s Green, Dublin 2, Ireland (a division of Penguin Books Ltd.) Penguin Group (Australia), 250 Camberwell Road, Camberwell, Victoria 3124, Australia (a division of Pearson Australia Group Pty. Ltd.) Penguin Books India Pvt. Ltd., 11 Community Centre, Panchsheel Park, New Delhi—110 017, India Penguin Group (NZ), 67 Apollo Drive, Rosedale, North Shore, Auckland 1311, New Zealand (a division of Pearson New Zealand Ltd.) Penguin Books (South Africa) (Pty.) Ltd, 24 Sturdee Avenue, Rosebank, Johannesburg 2196, South Africa Penguin Books Ltd., Registered Offices: 80 Strand, London WC2R 0RL, England Copyright © 2008 by Barbara Weltman and Malcolm Katt All rights reserved. No part of this book shall be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, without written permission from the pub- lisher. No patent liability is assumed with respect to the use of the information contained herein. Although every precaution has been taken in the preparation of this book, the publisher and authors assume no responsibility for errors or omissions.
    [Show full text]
  • Vol. 83 Wednesday, No. 60 March 28, 2018 Pages 13183–13374
    Vol. 83 Wednesday, No. 60 March 28, 2018 Pages 13183–13374 OFFICE OF THE FEDERAL REGISTER VerDate Sep 11 2014 22:04 Mar 27, 2018 Jkt 244001 PO 00000 Frm 00001 Fmt 4710 Sfmt 4710 E:\FR\FM\28MRWS.LOC 28MRWS amozie on DSK30RV082PROD with FRONT MATTER WS II Federal Register / Vol. 83, No. 60 / Wednesday, March 28, 2018 The FEDERAL REGISTER (ISSN 0097–6326) is published daily, SUBSCRIPTIONS AND COPIES Monday through Friday, except official holidays, by the Office PUBLIC of the Federal Register, National Archives and Records Administration, Washington, DC 20408, under the Federal Register Subscriptions: Act (44 U.S.C. Ch. 15) and the regulations of the Administrative Paper or fiche 202–512–1800 Committee of the Federal Register (1 CFR Ch. I). The Assistance with public subscriptions 202–512–1806 Superintendent of Documents, U.S. Government Publishing Office, Washington, DC 20402 is the exclusive distributor of the official General online information 202–512–1530; 1–888–293–6498 edition. Periodicals postage is paid at Washington, DC. Single copies/back copies: The FEDERAL REGISTER provides a uniform system for making Paper or fiche 202–512–1800 available to the public regulations and legal notices issued by Assistance with public single copies 1–866–512–1800 Federal agencies. These include Presidential proclamations and (Toll-Free) Executive Orders, Federal agency documents having general FEDERAL AGENCIES applicability and legal effect, documents required to be published Subscriptions: by act of Congress, and other Federal agency documents of public interest. Assistance with Federal agency subscriptions: Documents are on file for public inspection in the Office of the Email [email protected] Federal Register the day before they are published, unless the Phone 202–741–6000 issuing agency requests earlier filing.
    [Show full text]
  • Justin Bio Handout 2020-01-21
    Justin S. Weddle Founder 212-997-5518 [email protected] Justin Weddle is a skilled trial lawyer, litigation strategist, counselor, and Education appellate advocate. When the stakes are high, clients rely on his tenacity Columbia University School of Law, J.D. 1995 Managing Editor, Columbia Law Review and incisive analysis for tailor-made strategies and solutions in both Kent Scholar, Stone Scholar domestic and cross-border criminal, civil, and regulatory matters. As a Haverford College, B.A. 1992 result, Justin Weddle is a regular participant in the highest-profile Bar Admissions investigations, trials, and appeals, such as: New York Massachusetts LIBOR criminal cases U.S. District Courts: Southern District of New York, Eastern District of New York, and The FIFA corruption case District of Massachusetts U.S. Courts of Appeals: First, Second, Third, Circuit Court cases on SEC disgorgement and ALJ appointment issues Tenth, Eleventh, and D.C. Circuits U.S. Supreme Court U.S. investigation and litigation relating to Brazil’s Lava Jato Recognitions investigation Recognized by Super Lawyers as a Top Rated The Supreme Court Lucia decision rejecting the SEC’s ALJs as White Collar Crimes Attorney in New York, NY, since 2017 unconstitutional Listed in Who’s Who Legal, Business Crime Defense for both Corporates and The KPMG-PCAOB leaks criminal jury trial in the Southern District of Individuals New York Professional Activities Justin prosecuted white collar crime for more than 12 years as an Assistant Chair of the Appeals Subcommittee NYC Bar Association Federal Courts United States Attorney in the Southern District of New York, building and Committee trying complex fraud cases.
    [Show full text]
  • Are You the Next Phishing Victim?
    Are you the next Phishing Victim? Organisations today are faced with increasing threats coming from the cyberspace, ones which could significantly damage their operation and reputation. As all industries shift towards IT-oriented infrastructures, the same is being undertaken by malicious users and organisations as they are aware that the weakest links in Security are users. 90% of data breaches occurred as a result of phishing, resulting in an average cost of $3.86 for organisations. IBM - Phishing and Email Fraud Statistics in 2019 Email phishing is a form of social engineering where malicious emails are designed to deceive recipients into providing sensitive information, or clicking links or file attachments that install malware (e.g. ransomware). Phishing attacks can target mass amounts of users or be part of a specific targeted campaign (spear-phishing). In each of the cases the atack can result in the compromising of internal & client sensitive data, loss of productivity, loss of client trust, and expensive response costs. Countermeasures Although security awareness training for employees helps users to recognise malicious emails, phishing scams evolve and are becoming highly sophisticated so it is difficult to gauge whether the organisation will suffer a successful phishing attack. The PwC Phishing Simulation Campaign consists of an effective and practical exercise to assess how likely it is for one or more employees to fall for a phishing email and how far they will go: clicking a link; opening an attachment; divulging information; etc. Types of phishing simulation campaigns PwC Service Offerings Tier 1 Tier 2 Tier 3 A basic campaign An campaign with An advanced campaign with minimal or no manually tailored to which is developed based customisation.
    [Show full text]
  • Q1-2020-Report.Pdf
    AGARI CYBER INTELLIGENCE DIVISION REPORT Q1 2020 Email Fraud & Identity Deception Trends Global Insights from the Agari Identity Graph™ © Copyright 2020 Agari Data, Inc. Executive Summary Why attack hardened computer systems when it’s so much easier to hack human nature? The tactics employed in phishing attacks, business email compromise (BEC) scams, and other advanced email threats continue to shape shift, pummeling US businesses with attacks that lead to more than $700 million in losses each month. As the latest quarterly analysis from the Agari Cyber Intelligence Division (ACID) affirms, the success of these attacks is growing less dependent on technical prowess, and more on sophisticated forms of identity deception and advanced social engineering techniques. As infuriating as it may be, the brilliantly simple, expertly-crafted email messages used to dupe corporate employees into surrendering sensitive information, revealing login credentials, or paying for fraudulent invoices or gift cards grow more effective by the day. 62% of BEC Scams Target Gift Cards During the Holiday Season Gift cards continue to be the preferred cash-out method in BEC scams, accounting for 62% of such attacks from October through December 2019. Possible seasonal patterns have emerged in the types of gift cards requested. Google Play narrowly retained its status as the #1 most requested gift card, dropping from 27% share to 16%, while cards from Target, BestBuy, Sephora, and other retailers saw major increases in demand. Attackers may be capitalizing on office gift giving to launder stolen cards through physical goods rather than through traditional channels such as cryptocurrency exchanges. During the last two weeks of the year, BEC attacks were also 63% lower than the average seen during the rest of the quarter—indicating scammers go on holiday, too.
    [Show full text]
  • 7Th Annual Risk Americas Convention - 2018
    7th Annual Risk Americas Convention - 2018 Fraud, Cybercrime and Reputation Risk – What Organizations Can Do About It Dalit Stern, CPA, CFE Senior Director Enterprise Fraud Risk Management, TIAA New York - May 17, 2018 Agenda The intertwined landscape of fraud and cyber A vibrant marketplace changes the face of fraud Sophistication of social engineering techniques Customers Corporations The impact of cyber risk on fraud and reputation risks what to do about it Q&A 2 Disclaimer The views expressed in this presentation and in today’s discussion are the views of the speaker and do not necessarily reflect the views or policies of TIAA. Examples, charts and metrics are purely for illustrational purposes, and may have been modified or simplified in order to clarify a point. Neither the speaker, nor TIAA, accept responsibility for any consequence of the use of any part of the framework presented herein. 3 The Intertwined Landscape of Fraud and Cyber Assessing the risk of fraud in financial institutions: • Financial institutions continue to be subject to fraud: • In person • Remote fraud (online, interactive voice response (IVR) , paper ) • Consistent trends of money out and account maintenance fraud enabled by cyber incidents • Cyberattacks are becoming a more prominent fraud threat - designed to target: • Customer assets • Financial institution assets • Certain subsectors are more prone to cyber fraud but most see increased activity (e.g., banking, brokerage, retirement 4 insurance, investments) The Intertwined Landscape of Fraud and
    [Show full text]
  • 03-YU-Contemporary-I
    Page 1 IN THE REGULAR DIVISION OF THE OREGON TAX COURT (Property Tax) ) YU CONTEMPORARY, INC. ) ) Plaintiff, ) ) vs. ) ) DEPARTMENT OF REVENUE, STATE OF ) OREGON, ) ) Defendants, ) CASE NO. TC 5245 ) and ) ) MULTNOMAH COUNTY ASSESSOR, ) ) Intervenor. ) _________________________________________________________________ VERBATIM REPORT OF PROCEEDINGS _________________________________________________________________ April 5, 2016 Before the HONORABLE HENRY C. BREITHAUPT TRANSCRIBED BY: Kaedra Ray Wakenshaw, CCR, RPR, CRR CCR No. 1900 Page 2 1 A P P E A R A N C E S 2 FOR THE PLAINTIFF: 3 Jeffrey G. Bradford 4 Tonkon Torp L.L.P. 1600 Pioneer Tower 5 888 SW Fifth Avenue Portland, Oregon 97204 6 Michael J. Millender 7 Tonkon Torp L.L.P. 1600 Pioneer Tower 8 888 SW Fifth Avenue Portland, Oregon 97204 9 10 FOR THE DEFENDANT: 11 Daniel Paul Assistant Attorney General 12 Department of Justice 1162 Court Street NE 13 Salem, Oregon 97301 14 FOR THE INTERVENOR: 15 Carlos Rasch 16 Assistant County Counsel Multnomah County Attorney's Office 17 501 SE Hawthorne Boulevard Suite 500 18 Portland, Oregon 97214 19 20 21 22 23 24 25 Page 3 1 T A B L E O F C O N T E N T S 2 3 PROCEEDINGS PAGE 4 Opening Statement (Plaintiff)........................ 10 Opening Statement (Defense).......................... 20 5 6 TESTIMONY PAGE 7 JENNIFER L. MARTIN 8 Direct Examination..............................32 Cross-Examination...............................106 9 Redirect Examination............................152 Recross-Examination.............................160 10 AARON F. JAMISON 11 Direct Examination..............................162 Cross-Examination...............................203 12 Redirect Examination............................217 13 BELINDA M. DEGLOW Direct Examination..............................221 14 Cross-Examination...............................249 15 KARLA HARTENBERGER Direct Examination..............................263 16 JENNIFER L.
    [Show full text]
  • “Mismarking”: Developments in Valuation Fraud by Telemachus P
    Business Crimes Bulletin ® Volume 27, Number 2 • October 2019 “Mismarking”: Developments In Valuation Fraud By Telemachus P. Kasulis marking a fund’s books. And as the providing support for their pre- DOJ expands its mismarking inqui- ferred valuation. For example, a One of the central business func- ries beyond stocks and bonds and quote from an outside broker that tions performed by an investment into areas like private equity, these it would buy or sell the bond at a fund is the valuation of its posi- cases also illuminate the increasing given price would suffice. tions. Knowing how much its in- need for robust internal controls Lumiere and others at Visium vestments are worth allows a fund designed to eliminate the incen- abused this system. Motivated to to redeem investors at accurate lev- tives for an employee or manager overvalue their positions to increase els, demonstrate performance to to overvalue assets. profits, they obtained inflated price prospective investors, and charge quotes from corrupt brokers eager LUMIERE: “OVERRIDING” THE an appropriate amount in fees. And to handle transaction flow for a sig- while some positions can be easy to PRICING SERVICES AND THE nificant fund like Visium. Prosecu- value — one need look no further MOTIVES TO MISMARK tors in the Southern District of New than Bloomberg or the Wall Street From 2011 through 2013, Stefan York showed at Lumiere’s 2017 trial Journal to know the going rate for, Lumiere worked at hedge fund Vi- that the brokers frequently did no say, Apple stock — more exotic or sium Asset Management, which at research on the bonds in question illiquid holdings can present a chal- its peak had a net asset value of and simply parroted back the price lenge for even the most conscien- approximately $8 billion.
    [Show full text]
  • Caught in the Act: How Hedge Funds Manipulate Their Equity Positions
    Caught in the Act: How Hedge Funds Manipulate their Equity Positions Gjergji Cici, Alexander Kempf, and Alexander Puetz* First Draft: August 2010 This Draft: August 2011 AFA 2012 Chicago Meetings Paper CFR Working Paper No. 10-15 ABSTRACT Using 13F position valuations, we show that hedge fund advisors intentionally mismark their stock positions. We document manipulation even after eliminating issues inherent in the pricing of illiquid securities. The documented mismarking is related to hedge fund incentives. Mismarking is more pronounced for advisors that self-report to commercial hedge fund databases and increases after advisors start reporting. Significantly stronger mismarking is also documented among advisors that report more frequently to their current investors and are domiciled in offshore locations. Our analysis shows that advisors employ mismarking strategically to smooth their reported returns and push otherwise small negative returns above zero. JEL classifications: G23, G28 Keywords: Hedge Funds, Fair Value, Return Smoothing, Valuation Manipulation, Fraud * Cici is from Mason School of Business, The College of William & Mary. Email: [email protected]. Cici is also a Research Fellow at the Centre for Financial Research (CFR), University of Cologne. Kempf is from Department of Finance and Centre for Financial Research (CFR), University of Cologne. Email: [email protected]. Puetz is from Department of Finance and Centre for Financial Research (CFR), University of Cologne. Email: [email protected]. The authors thank Luis Palacios and Rabih Moussawi from Wharton Research Data Services for providing them with the 13F positions valuation data. The authors thank Vikas Agarwal, Scott Gibson, Jim Hodge of Permal Asset Management, John Merrick, Harvey Westbrook, and Marco Rossi for their helpful comments.
    [Show full text]