Driven. Creative. Strategic. Focused.

Driven. Creative. Strategic. Focused.

  1. Home
  2.  → 
  3. Blog
  4.  → Keep Your Eye on The Big Picture

Keep Your Eye on The Big Picture

On Behalf of | Apr 16, 2018 | Blog, Regulatory Issues (SEC & FINRA)

Bombshell criminal cases like those involving Bernard Madoff garner worldwide media headlines and rock the financial sector, but they are extremely rare in the big picture.

For hedge fund managers and banking executives, being on the wrong side of a civil case is a much more realistic threat to their business, livelihood, and professional reputation. Regulatory bodies such as the Securities and Exchange Commission (SEC) have the potential to sink even the most successful operations.

Playing by The Rules Is Not Always Enough

Even brokers, managers, and firms who work hard to stay on the right side of regulations can find themselves facing the full weight of overzealous regulatory bodies staffed with career professionals looking to make a name for themselves. A recent example from New Jersey, involving the Securities and Exchange Commission (SEC) and Yorkville Advisors LLC, demonstrates the importance of having legal representation with the resources to fight back.

In the case of SEC v Yorkville Advisors LLC et al, U.S. District Judge George B. Daniels dismissed allegations against a hedge fund firm that had been accused grossly exaggerating the value of their investments in order to boost fees. Judge Daniels said that he found “no material evidence of fraud or negligence” to support the claims brought against the firm by the SEC.

Click here to view the full memorandum decision and order from the United States District Court Southern District of New York.

Stop and think about the wording Judge Daniels used: “no material evidence.” Not “some” evidence, or “little” evidence. No evidence. If Yorkville Advisors LLC could find itself facing a serious legal threat from the SEC having done nothing wrong, the same could happen to your firm.

It is crucial to make sure you have legal representation capable of fighting off such accusations to protect your professional reputation and bottom line.

At Ford O’Brien Landy LLP we will provide you with thorough representation in the matter at hand, while counseling you on how you can avoid similar struggles in the future. We routinely represent individuals and firms facing legal action from regulatory bodies such as the SEC and Federal Reserve Board. Learn more.