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Howard R. Elisofon: matters
Profile Matters News Events Publications
Ongoing
Madoff Litigation - Filings Against the SEC
We represent a number of victims of Bernard Madoff's Ponzi scheme. In January of 2009, we filed notices of claim with the Securities & Exchange Commission alleging negligence under the Federal Tort Claims Act. The SEC rejected our claims six months later, and on Wednesday, October 14, 2009, we filed the first known lawsuit against the SEC seeking monetary damages under the FTCA, Molchatsky and Schneider v. United States.  We are lead counsel on the Molchatsky case and we have since filed two additional cases against the United States on behalf of other Madoff victims.  All of our cases are pending in the Southern District of New York before Judge Swain.  To read news items related to Herrick's involvement with this matter, click here.
2012
Investment Advisor - Successful Conclusion to SEC Investigation and Wells Notice Alleging Fraud  Against Senior Executive
We represented a senior executive investment advisor formerly associated with the now infamous Stanford Financial Group in a Securities and Exchange Commission investigation.  In 2011, the SEC issued a Wells Notice concerning our client's alleged fraudulent disclosures and affirmative misrepresentations in the sales of Stanford International Bank CDs, allegedly a massive Ponzi scheme.  After making two submissions in response to the Wells Notice and an oral presentation to the staff at the SEC's Fort Worth office, we successfully persuaded the SEC to issue a no-action letter stating that it will not bring any charges against the client.
Ongoing
Broker Dealer - Insider Trading Investigation
Representation of a broker dealer and key executives in an SEC insider trading investigation.
Ongoing
Inter-Dealer Brokerage Firm - $500 Million Raiding Case
Representation of an affiliate of a billion-dollar inter-dealer brokerage firm in a large "key employee raiding case" brought by a competitor whose stock market valuation declined 24% (approximately $450 million) in one day after our client hired approximately 20 of its credit derivatives brokers and employees. After an intense oral argument by our firm and other firms aligned with our client in the spring of 2008, the New York Supreme Court denied a temporary restraining order. A few months later, the court denied a preliminary injunction.  Thus, the subject employees were permitted to work for our client.  The matter is now in arbitration where we are defending hundreds of millions of dollars in claims.
Ongoing
International Insurance Company - Breach of Contract
Representation of major international insurance company in breach of contract dispute.
Ongoing
FINRA Investigation - Gift and Gratuity
Representation of a senior trader in a FINRA investigation into the possible violation of FINRA gift and gratuity rules.
Ongoing
Senior Broker - FINRA Investigation
Representation of a registered senior broker in a FINRA investigation into possible selling-away activities.
2008-2011
SEC Matter - Insider Trading
Representation of a defendant charged with insider trading by the Securities Exchange Commission.
Ongoing
Foreign Insurance Company - Wrongful Discharge Claim
Representation of a foreign insurance company in connection with the wrongful discharge claim from the managing directors of a U.S. subsidiary.
Ongoing
Brokerage Firm - Broker Arbitrations
Representation of a leading independent broker-dealer and its officers in several FINRA arbitrations concerning compensation claims brought by former brokers, and claims brought by a broker-dealer for breach of contract, breach of fiduciary duty and unfair competition.
Ongoing
SEC Matter - CEO of Broker Dealer Investigated for Fraud
Representation of the Chief Executive Officer of a significant broker dealer in a U.S. Securities and Exchange Commission investigation regarding alleged misrepresentations in the offering of private placement interests, and responding to an SEC Wells Notice.
Regional Brokerage Firm - Investor Claims
Representation of a regional brokerage firm in multiple investor claims alleging fraud and misrepresentation in connection with a failed private placement.
Ongoing
Brokerage Firm - Defamation Litigation
Representation of a leading independent broker-dealer against claims of defamation and tortious interference asserted by a competitor firm.
Ongoing
Regional Securities Firm - FINRA Investigation
Representation of a regional securities firm in a FINRA investigation in connection with the firm’s hiring of a statutorily disqualified person.
Ongoing
Carpet and Rug Manufacturer - Employment Issues
Representation of a carpet and rug manufacturer in employment disputes, restrictive covenant analysis and contract disputes, including a contract dispute and wrongful termination claim by a former employee claiming entitlement to a bonus.
Ongoing
FINRA Investigation
Representation of four account executives in an FINRA investigation alleging the falsification of records during a raiding dispute.
Ongoing
Financial Service Firm - Insider Trading
Representation of a financial service firm and key executives in an SEC insider trading investigation.
Ongoing
Madoff Litigation - SIPC Trustee Actions
Representation of Madoff victims named as defendants in actions filed by the SIPC Trustee to recover monies withdrawn from their Madoff securities accounts. Those actions, which are commonly referred to as "clawback" claims, are before the Bankruptcy Court for the Southern District of New York.
2010
International Insurer - FINRA Arbitration
Representation of a major international insurer in a FINRA arbitration brought by a group of customers alleging improper selling- away by an account executive.
2010
International Insurance Carrier - Indebtedness Recovery
Representation of international insurance carrier in its attempts to recover a two million dollar indebtedness from a former account executive.
2010
NYSE Company - Internal Investigation
Representation of the Audit Committee of a New York Stock Exchange listed company to conduct an internal investigation of whistleblower claims brought by a former officer alleging that certain officers and directors had committed accounting fraud and violated the Sarbanes-Oxley Act.
2009
Broker-Dealer - Employment Contracts
Representation of a regional bank broker-dealer in preparing employment contracts to hire an account executive.
2009
Branch Manager - FINRA Investigation
Representation of the branch manager of a national retail brokerage firm in a FINRA investigation involving the failure to supervise in connection with a major defalcation from a customer account by an administrative employee.
2009
National Retail Brokerage Firm - Civil Litigation
Representation of a national retail brokerage firm in a state court action alleging sales practice violations.
Ongoing
Securities Brokers - State Insurance Department Investigation
Representation of more than 150 securities brokers of a national retail brokerage firm in proceedings before a state insurance department on issues concerning annuity exchanges.
Ongoing
Principal of Securities Brokerage - NASD Arbitration
Representation of the principal of a brokerage firm in an NASD customer arbitration for breach of contract.
2009
Trader - FINRA Investigation
Representation of a former trader at a national retail brokerage firm in a FINRA regulatory investigation into charges of front-running one of the firm's customers.
Ongoing
Investor - SEC Investigation
Representation of an investor in an SEC inquiry in connection with an insider trading investigation.
2008
Investor Group - Fraud and Misrepresentation Claims
Representation of an investor group in connection with fraud and misrepresentation claims against an investment manager in various private investments.
2008
International Investigation -  Market Manipulation
Representation of a foreign citizen in connection with an indictment by the U.S. Attorney’s Office and an SEC investigation alleging market manipulation of multiple OTC securities in the U.S. markets via the internet.
2008
Stock Brokers - FINRA Investigation
Representation of multiple stock brokers of a national retail brokerage firm in a FINRA investigation into various sales practice violations.
2008
Individuals - Insider Trading
Representation of two foreign citizens in connection with an SEC lawsuit alleging insider trading of a New York Stock Exchange listed security.
2008
Investment Banker - FINRA Proceeding
Representation of a former employee of a major investment bank in a FINRA regulatory proceeding on charges that he misappropriated funds from his employer by improperly submitting personal expenses as business-related expenses.
2008
Broker/Dealer - Non-Solicitation Dispute
Representation of a registered broker/dealer in defending an action for a temporary restraining order brought by a competitor seeking to restrain our client’s brokers from contacting their respective clients.
2008
Securities Finder - SEC Investigation
Representation of securities finder in a joint U.S. Attorney and SEC action alleging fraud in connection with securities lending.
2007
Executive - SEC Investigation
Representation of an executive of a national retail brokerage firm in a joint U.S. Attorney and SEC action alleging fraud in connection with securities lending.
2007
National Retail Brokerage Firm - Arbitrations
Representation of a national retail brokerage firm and its employees in over 75 arbitrations alleging various sales practice violations.
2007
Senior Executive - U.S. Attorney/SEC Investigation
Representation of a senior executive of a national retail brokerage firm in a joint U.S. Attorney/SEC investigation relating to market timing activities. No charges were instituted against the executive.
2007
Retail Brokerage - NASD Investigation
Representation of a retail broker of a national retail brokerage firm in a NASD investigation alleging numerous sales practice violations in connection with customer accounts. No charges were instituted after the filing of a Wells submission.
2007
Retail Brokerage - NYSE Investigation
Representation of a national retail brokerage firm in claims brought by the Enforcement Division of the New York Stock Exchange relating to proxy procedures used on an industry-wide basis. The case was resolved after discovery.
2007
Securities Broker - State Regulatory Proceeding
Representation of a securities broker in a regulatory proceeding brought by the New Jersey Bureau of Securities alleging unregistered and unauthorized transactions.
2007
Independent Broker-Dealer - State and NASD Litigation
Representation of a national independent broker-dealer in a New York State civil litigation and in a related NASD arbitration against former employees to recover fees and restitution payments made by the firm as a result of the misconduct of its former employees.
2007
Securities Broker - Termination Disclosure Inquiry
Representation of a securities broker in an NASD regulatory inquiry relating to his termination disclosure concerning alleged forgery of customer signatures on new account forms.
2007
Retail Brokerage - NASD Arbitration
Representation of a national retail brokerage firm in an NASD customer arbitration alleging sales practice violations.
2007
National Retail Brokerage - NASD Arbitration
Representation of a national retail brokerage firm and its employee in an NASD customer arbitration alleging sales practice violations.
2007
National Exchange Department Head - SEC Investigation
Representation of a department head of a national exchange's regulatory division in an SEC investigation into the exchange's failure to enforce its member surveillance program and filing false records with the SEC. The former department head received a cease-and-desist order with no monetary penalties assessed against him.
2006
Retail Brokerage Branch Manager - NASD Charges
Successful defense of the branch manager of a national retail brokerage firm. Following a hearing, the hearing panel dismissed all of the NASD's charges, including allegations of supervisory failures. The dismissal was upheld on appeal by the NASD to the NASD's National Adjudicatory Council.
2006
Retail Brokerage - Federal Investigation
Representation of a national retail brokerage firm in a joint U.S. Attorney/SEC investigation of illegal "frontrunning" trading activity.
2006
First Allied Securities - NASD Arbitration
Representation of First Allied Securities in an NASD arbitration in Seattle, Washington involving claims against a competitor for raiding an entire division of the company, including mutliple brokers in multiple offices.
2006
Brokerage Branch Manager - NASD Investigation
Representation of the branch manager of a regional brokerage firm in an NASD regulatory investigation into improper market timing activities that allegedly occurred in the branch office. No charges were brought against the branch manager.
2006
Securities Broker - Forgery Investigation
Representation of a broker in an NYSE regulatory investigation alleging that the broker forged managerial signatures on new accounts forms and disposed of original employer documents. The broker received an admonition letter in lieu of an enforcement proceeding being brought against him.
2005
Hedge Fund Managers - SEC Investigation
Representation of two hedge fund managers in an SEC investigation relating to market timing activities. No charges were instituted.
2005
Mutual Fund Company - NASD Arbitration
Representation of an international mutual fund company in a NASD arbitration brought by a senior officer seeking alleged wrongfully withheld compensation and bonuses.
2005
Employees - SEC Investigation
Representation of multiple employees from a public company in an SEC investigation alleging misstatements in the company’s public filings. No charges were instituted.
2005
National Retail Brokerage - State Court/NASD Arbitration
Representation of a national retail brokerage firm in successfully seeking a TRO, permanent injunction and monetary damages in connection with raiding of employees by a competitor.
2005
Financial Services Company - Internal and Grand Jury Investigations
Conducted an internal investigation for a major international financial services corporation concerning allegations that company employees had provided false customer account information to another financial institution. We also represented the company in a related New York state grand jury investigation.