Practice Areas

SEC Enforcement Defense and Regulatory Counseling

Paul Hastings is a market leader in securities enforcement defense, defending clients in investigations and proceedings initiated by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Department of Justice (DOJ), the United States Attorney’s Offices, state Attorneys General, and other state and federal regulators. Our team includes former officials from the SEC and the DOJ; alumni from the SEC’s Executive Staff, Division of Enforcement, and Division of Corporation Finance; former federal prosecutors; and former state regulators. Our clients include public companies, financial institutions, investment advisers, broker-dealers, hedge funds, and private equity firms, and their officers and directors. We have achieved remarkable outcomes for these clients in the most groundbreaking securities enforcement investigations, prosecutions, industry sweeps, and civil cases.

Indicative of our national prominence, the Securities Enforcement group is led by partners Brad Bondi in Washington, D.C. and New York and Ken Herzinger in San Francisco, both of whom led national securities enforcement practices at their prior firms.

Brad Bondi has 26 years of experience and is ranked nationally in Chambers and Partners for Securities Enforcement, received Law360’s MVP for the Year for White Collar in 2019, 2021, and 2022 (the only lawyer ever to receive the award three times), has twice been named by the National Association of Corporate Directors (“NACD”) as one of the top lawyers in corporate governance, and has been ranked by Securities Docket as one of the top SEC enforcement defense attorneys in the country since the inception of its list. LawDragon, Benchmark Litigation, The Legal 500, and Super Lawyers each rank him as a top securities litigator in the nation, and the National Law Journal conveyed its coveted “Trailblazer” award to him for his career accomplishments in securities law. He has been described by Securities Docket as “the first choice among Boards of Directors and Audit Committees of the Fortune 500 when their company is faced with SEC or DOJ problems.” Brad previously served on the Executive Staff of the SEC as Counsel to two SEC Commissioners for enforcement matters and as a Special Assistant United States Attorney.

Ken Herzinger is a former SEC Enforcement Division attorney and has 25 years of experience defending companies and individuals in a wide range of regulatory matters, litigation, and investigations. He is recognized as a Litigation Star by Benchmark Litigation Guide, and he is listed in The Legal 500 USA for Securities: Shareholder Litigation; M&A Litigation.

Areas of Proficiency

Publicly-traded companies, including their boards of directors, audit committees, and special committees
Financial institutions
Investment advisers, hedge funds, private equity firms, and broker-dealers
Directors, officers, and high profile individuals

Industry Recognition

Named White Collar Group of the Year by Law360.
Named Most Impressive Investigations Practice by Global Investigations Review.
Recognized among the leading Securities Litigation practices by The Legal 500 US.
Recognized as Fintech Group of the Year by Law360.
Recognized as a leading firm for Dispute Resolution and multiple lawyers ranked as Litigation Stars by Benchmark Litigation.
Ranked among the leading firms for Dispute Resolution in The American Lawyer’s Litigation Power Rankings.
Recognized as a top Securities Litigation practice by Chambers USA.
Named Compliance Group of the Year by Law360.
Ranked among the Top 10 in Global Investigation Review’s GIR Top 100.

Recent Representative Experience

Public Companies

Technology Companies

Represented Tesla in various government investigations, including relating to Elon Musk’s take-private tweet.
Represented Tesla in connection with multiple other SEC investigations that resulted in the SEC closing the investigations without charges.
Counseled a technology manufacturer on compliance and disclosure obligations including those relating to social media, marketing, and disclosures to investors.
Represented a technology company in various government inquiries that all were closed with no charges.
Represented the audit committee of a Fortune 150 company in an independent, international investigation and in interfacing with the SEC Division of Enforcement in its investigation.
Represented a multi-billion-dollar public company in parallel DOJ and SEC investigations into restatements resulting from impairment.

Pharmaceutical and Healthcare Companies

Represented a global pharmaceutical company in an SEC investigation that resulted in no penalties.
Represented pharmaceutical company in connection with short seller attack and related SEC investigation and litigation.

Energy

Represented a power generation company in connection with SEC investigation that resulted in the closing of the SEC investigation without action.
Represented a clean energy company in connection with SEC investigation that resulted in the closing of the SEC investigation without action.

Industrial and Manufacturing

Represented an industrial company in an SEC investigation that resulted in a closing letter and no charges.
Advised a leading international camera and medical device maker in connection with global criminal and regulatory investigations of accounting irregularities and its restatement of financial statements, including developing its overall strategies relating to crisis management, corporate governance, and management of criminal and other investigations in several countries.
Represented the former CFO of an automotive company in an SEC investigation relating to disclosures made during a capital raise.
Represented a Fortune 150 company in a major SEC investigation that resulted in a successful resolution.

Financial Institutions

Advised a Los Angeles-based asset management firm in connection with an SEC inquiry regarding registration-related issues.
Counseled a New York-based leading investment firm with over $57 billion under management in connection with insider-trading related issues.
Represented an asset manager of a registered closed-end fund in an enforcement matter related to the holding of a shareholder meeting involving an activist group. We successfully resolved the matter by demonstrating to the SEC that the adviser’s actions were appropriate under applicable state and federal law.
Regularly work in concert with all our registered fund advisers in connection with various issues raised during examinations (sweep and annual). Our efforts seek to resolve and eliminate these inquiries to avoid the progression of the issue to an enforcement matter.
Represented a digital asset company in an SEC investigation in connection with the marketing of crypto-assets that the SEC contended were investment contracts.
Represented an international investment bank in “dark pool” trading, marketing and disclosure investigation by the SEC and the New York Attorney General’s Office (NYAG). The SEC and NYAG brought charges against similarly situated firms, but not against our client.
Represented a private equity fund adviser in connection with an SEC investigation of breach of fiduciary duty and disclosure issues relating to allocation of fees. SEC investigation terminated.
Represented a public company and its executives in SEC and DOJ investigations relating to the securitization and servicing of mortgage-backed assets.
Represented a futures, options, and equity trading firm and its principal in a Regulation SHO investigation by the SEC. The investigation was concluded without charges being brought against our clients.
Represented an investment company in connection with SEC investigation that resulted in the SEC closing the matter without charges.
Represented a hedge fund in connection with SEC investigation that resulted in the SEC closing the matter without charges.

Investment Advisers, Hedge Funds, Private Equity, and Broker-Dealers

Represented an investment adviser in an SEC investigation of related party transactions, Form ADV disclosures and allegations of common control. No charges were filed after a lengthy investigation.
Represented the investment adviser affiliate of a large, multi-national professional services company in responding to SEC and DOL inquiries regarding potential breach of fiduciary duty. We successfully convinced the SEC and DOL to close the inquiries without enforcement action.
Represented a registered investment adviser affiliate of a Fortune 200 company in connection with a 2+ year investigation regarding the investment adviser’s alleged receipt of undisclosed compensation, including 12b-1 fees, and mutual fund share class selection practices. We persuaded the SEC to close the investigation.
Represented a Franklin, Tennessee-based registered investment adviser in a civil suit filed by the SEC regarding their mutual fund share class selection practices. Helped to obtain a full defense verdict in SEC v. CapWealth Advisors, LLC, Timothy J. Pagliara, and Timothy R. Murphy, Civil Action No. 3:20-cv-01064 (M.D. Tenn. filed December 11, 2020).
Represented investment advisers to mutual fund families in market timing investigations conducted by the SEC and N.Y. Attorney General’s Office.
Represented the broker-dealer affiliate of a Fortune 200 company in connection with successive SEC and FINRA inquiries regarding allegedly improper sales practices by several top registered representatives. We persuaded the SEC and FINRA to close the inquiries without enforcement action.
Represented the broker-dealer affiliate of a Fortune 200 company in connection with a FINRA enforcement action related to a cybersecurity breach. As part of the representation, we advised the broker-dealer regarding enhancements to its compliance program and to its cybersecurity policies and procedures.
Represented a broker-dealer in an SEC investigation of micro-cap securities trading.
Represented a broker-dealer in FINRA and NY DFS investigations of its crypto trading.
Represented broker-dealer in a FINRA investigation of its international trading and compliance with sanctions laws.

Directors, Officers, and High Profile Individuals

Represented the founder of an electric vehicle startup company in connection with DOJ and SEC inquiries, and in connection with various lawsuits, related to alleged misstatements relating to technology.
Represented the founder and chairman of electric vehicle startup in criminal securities and wire fraud trial in the Southern District of New York.
Represented multiple executives in various criminal investigations, including those related to insider trading and securities fraud.
Represented former executive of major cryptocurrency exchange in connection with DOJ investigation.
Represented the former CEO of a digital media company in connection with insider trading investigation conducted by the U.S. Attorney’s Office for the Southern District of New York.
Represented formerchair of audit committee of telecommunications company in DOJ and SEC investigations.
Represented founder of block chain development company in connection with SEC investigation.
Represented chairman of energy generation company in connection with SEC investigation.
Represented the directors of publicly-traded insurance company in connection with SEC investigation.
Represented director of supply chain finance company in connection with SEC investigation.
Represented the CFO of a hedge fund in connection with SEC investigation.
Represented the former CFO of Wilmington Trust Company in a high-profile, $360 million complex federal criminal trial and related SEC litigation, involving financial crisis–era accounting and disclosure issues concerning past‑due commercial real estate and construction loans.
Represented the former senior executive of a large international insurance company in an investigation by the SEC and NYAG involving accounting and disclosure issues. Criminal and civil charges were brought against a group of individuals, but our client was not charged.
Represented an investment banker in an insider trading investigation by the SEC and Chicago U.S. Attorney’s Office, resulting in a non-custodial sentence of probation.
Represented the CEO of a leading media company in an SEC investigation.
Represented the founder of a genetic testing laboratory in connection with a multi-district federal investigation.