Taking Aim at Wall Street

Information about Taking Aim at Wall Street

Published on August 10, 2014

Author: Miles.Peterson

Source: authorstream.com


Taking Aim at Wall Street – How Covert Investigatory Techniques and Other Emerging Trends and Priorities Are Shaping Enforcement : Senior Fellows from Practice: Rory Cohen, JD, Partner, Mayer Brown Stephen Obie, JD, Director of Enforcement, CFTC Jonathan Streeter, JD, Assistant U.S. Attorney, SDNY, U.S. Department of Justice* Andrew Fish, JD, Partner, LockeLord Taking Aim at Wall Street – How Covert Investigatory Techniques and Other Emerging Trends and Priorities Are Shaping Enforcement Investigative Process - Governmental Tactics: Wiretapping and other surveillance tools In case where there is ongoing criminal activity and conventional techniques will not suffice, wiretaps may be obtained Standards for obtaining wiretaps extremely high Cooperating witnesses and witness flipping, promises of leniency Attempt to obtain cooperation with evidence that has been collected Use cooperating witnesses to covertly record conversation and obtain evidence Investigative Process - Governmental Tactics Investigative Process - Governmental Tactics (continued): Market surveillance techniques; data analysis Suspicious trading reporting Aberrational trading reviews Trading records, instance messages, emails, bank records, telephone records, etc . New Dodd-Frank regulatory powers Civil perjury Whistleblowers Investigative Process - Governmental Tactics (continued) International Cooperation: Unprecedented level of current cooperation IOSCO MMOU vs. MLAT Joint investigations Joint actions International Cooperation Interacting with Regulators and Criminal Authorities : Regulators and criminal authorities have become more sophisticated   Managing inquiries and interviews   Enforcement requests versus market requests – don’t be fooled Deciphering between innocuous inquiries seeking to learn about the business from those predicated upon “suspicions of bad behavior ” Interacting with Regulators and Criminal Authorities Interacting with Regulators and Criminal Authorities (continued): Protecting the firm when allegations or assertions are made What do you get credit for? Pitfalls to avoid Best practices from a government’s perspective Developing effective educational and training materials Identifying high risk and unusual circumstances Aberrational performance reports Aberrant trade recommendations Monitoring outside business relationships E-mail , instant messaging and other communication tools Monitoring trading with the Street and counterparty relationships Interviewing new candidates Proactive behavior – response and prevention; disciplinary action versus termination Implementing an effective culture of compliance Pros and Cons of Self-Reporting Interacting with Regulators and Criminal Authorities (continued) Enforcement Priorities: Insider Trading Expert network Political Intelligence What is it and how does it differ from insider trading? Challenges to fitting political intelligence and trading on such information within anti-fraud rules Illustrative cases ( Martoma /Gilman/ Gerson Lehman/Cuban) Implementing effective front end compliance controls Tools for monitoring outside relationships and back end surveillance controls Enforcement Priorities Enforcement Priorities (continued): Short sales, benchmark rate and other forms of market manipulation High Speed/Algorithmic Trading; Other Disruptive Trading Practices Conflicts of interest Valuation Allocations of investment opportunities Best practices for identifying, mitigating, managing and disclosing conflicts of interest Enforcement Priorities (continued) Prosecutorial Discretion and Case Selection : Factors used by the government to handicap criminal and criminal cases Mitigating factors evaluated when considering enforcement Impact of recent setbacks Lessens from Cuban – will the SEC to be more careful in bringing cases? Prosecutorial Discretion and Case S election

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