Because of our enforcement defense and former prosecutorial experience, MNR lawyers often are asked by companies to conduct internal investigations into allegations of wrongdoing by its management or employees. We handle these inquiries discreetly and thoroughly in order to minimize our clients’ risk and exposure. We also counsel our clients regarding potential referrals to law enforcement agencies.

MNR Recent Cases:

• Representation of a U.S.-based media company, in an internal investigation and subsequent federal criminal investigation into the FIFA soccer bribery scandal. MNR was able to convince the government that all fines should be paid by the parent company, allowing our client to continue to operate and move forward with a stronger compliance program.

• Representation of a Swiss financial institution, Thurgauer Kantonalbank, as an “Independent Examiner” to conduct a factual investigation into the bank’s conduct related to the U.S./Swiss Bank Program investigation. Ultimately, the DOJ confirmed MNR’s findings and agreed that the bank did not engage in any criminal violations in the United States.

• Successful internal investigation for a Fortune 500 health insurance corporation related to allegations of self-dealing with third-party vendors. The investigation resulted in the for-cause termination of several managers and employees.

• Successful representation and internal investigation on behalf of foreign private security firms into alleged violations of the Foreign Corrupt Practices Act pertaining to operations in Iraq and Afghanistan. No charges were filed, and no penalties of any kind were imposed against the client.

• Successful representation and internal investigation on behalf of a Fortune 500 security services corporation into allegations of procurement fraud. No charges were filed, and no penalties of any kind were imposed against the client.

• Successful representation and internal investigation on behalf of a private financial institution into allegations of money laundering as well as embezzlement by a former comptroller. No charges were filed, and no penalties of any kind were imposed against the client.

• Successful internal investigation on behalf of a professional sports franchise regarding tax issues.

• Successful internal investigation on behalf of a professional sports franchise regarding pharmaceutical and Controlled Substances Act compliance.

• Successful representation and internal investigation of a Fortune 500 media corporation into allegations of kickback payments in connection with the award of South American soccer television rights.

• Representation of a private school in an internal investigation into the current and former practices of the athletic department at the school and the implementation of new policies and protocols.

• Internal investigations of various Swiss banks’ purported conduct in assisting U.S. citizens in the concealment of assets.

• Internal investigation on behalf of the Board of Directors into alleged corporate abuses involving a charitable organization in New York State.

Companies and their individual executives are the frequent targets of aggressive government enforcement under the far-reaching tools provided by federal securities laws. At MNR, we utilize our trial-ready skills and substantial experience to navigate our clients through the thicket of securities enforcement. Our team has extensive experience in defending a wide range of traditional and more novel SEC cases, including allegations pertaining to stock price manipulation, market timing, accounting and disclosure fraud, revenue recognition, Ponzi schemes, insider trading, spoofing, options backdating, and the misappropriation of corporate assets.

MNR Recent Cases:

• SEC v. Par Funding: Representation of Par Funding’s Head of Investor Relations (20-cv-81250). Prior to the SEC action, Par was one of the nation’s largest merchant cash advance businesses. The SEC moved ex parte to place the company in receivership and has raised allegations of improper registration and disclosure related to private note offerings that raised hundreds of millions of dollars from private placement funds and individuals.

• SEC v. 1 Global Capital LLC: Representation of Carl Ruderman, the former chairman and CEO of 1 Global Capital, LLC (18-cv-61991). Prior to its bankruptcy, 1 Global was one of the nation’s largest merchant cash advance businesses. The SEC complaint alleged securities offering fraud and misappropriation of corporate assets violations. The SEC action sought more than $250 million in disgorgement and penalties. MNR secured a consent judgment, with no admissions of liability, for disgorgement and penalty amounts below a total of $33 million dollars.

• SEC v. Woodbridge Financial: Representation of an individual relief defendant who was the then-wife of Woodbridge Financial Group’s principal and CEO, Robert Shapiro, and a member of various related LLC entities that received monies from Woodbridge entities at the direction of her husband (17-cv-24624). The SEC charged that Mr. Shapiro orchestrated a $1.2 billion dollar retail investment Ponzi scheme and misappropriated corporate assets and investor funds to LLCS that he controlled. Mr. Shapiro and the company ultimately were ordered to pay more than one billion dollars in disgorgement and financial penalties. MNR successfully obtained a consent judgment for Shapiro’s wife, with no admissions of liability, for disgorgement and penalty amounts totaling $100,000.

• SEC v. Estate of David Brooks: Representation of the estate of David Brooks, the former CEO of Point Blank Solutions, in a $200 million securities fraud enforcement action brought in conjunction with parallel criminal, civil forfeiture and corporate bankruptcy proceedings in New York and Delaware. MNR secured a global settlement for the client (and Mr. Brook’s surviving spouse and children) that netted them more than $25 million dollars of previously-restrained assets held by the U.S. government as part of the prior criminal proceedings against Mr. Brooks for insider trading and securities fraud. The case also involved litigation of then-novel claims concerning the scope of the SEC’s disgorgement remedies in the wake of Kokesh v. SEC.   

• SEC v. Levin: Representation of George Levin, a successful entrepreneur who operated the largest “feeder” fund which invested in attorney Scott Rothstein’s notorious $1.2 billion Ponzi scheme.  After trial, MNR obtained a significantly reduced penalty for the client, and on appeal obtained a reversal of liability on an issue of first impression concerning the “safe harbor” regulatory exemption for the registration of securities. SEC v. Levin, No. 15-14375 (11th Cir.).

• Successful representation of a former CFO of a large publicly-traded entertainment corporation where MNR convinced the SEC and DOJ to not charge its client related to alleged misstatements in the company’s corporate filings.

• Successful representation of the CFO of a large publicly-traded e-commerce corporation where MNR convinced the SEC and DOJ to not charge its client related to alleged misstatements and improper revenue recognition in the company’s corporate filings as well as “books and records” violations.

• Successful representation of the CEO of a New York investment firm in response to a SEC investigation into allegations of insider trading. No charges were pursued after a Wells submission was made by the defense team.

• Successful representation of a former city manager in a SEC investigation into alleged 10b-5 violations of securities laws related to city bond offerings and other financial filings. No charges were pursued after a Wells submission was made by the defense team.

• Successful representation of a hedge fund CEO concerning alleged securities violations in several private placement offerings. No charges ultimately were brought by the SEC.

• Successful representation of a former CFO for a private financial firm concerning alleged securities violations in several private placement offerings. No charges ultimately were brought by the SEC.

• Pool counsel representation for wealth managers and supervisors of a large U.S. financial services corporation in an SEC investigation into various sales and referral practices with respect to banking, brokerage, and wealth management services.

• SEC v. Huff: Representation of the former CEO of Globetech, a publicly-traded company, in an SEC action concerning “pump and dump” and market manipulation allegations through misleading financial reporting. The case ultimately was settled with no admission of wrongdoing.

MNR has handled high-profile FTC enforcement actions alleging deceptive marketing and unfair business practices by companies and individuals in several different business sectors, including debt relief, invention promotion and patenting, and sweepstakes. Because of our courtroom experience, we aggressively defend these actions at all stages and mount vigorous defenses to the FTC’s efforts to impose asset freezes, injunctions, and receiverships at the outset of cases.

MNR Recent Cases:

• FTC v. American Student Loan Consolidators: Representation of companies providing student debt relief services and their principles in FTC enforcement action alleging that defendants misrepresented their affiliations to student loan providers and violated various telemarketing and debt collection laws and regulations.

• FTC v. Jeremy Marcus: Representation of defendant in contempt proceedings in FTC enforcement action alleging that defendant engaged in deceptive marketing in connection with various debt relief businesses and seeking in excess of $80 million.

• FTC v. World Patent Marketing: MNR represented World Patent Marketing, an invention promotion company, and its CEO Scott Cooper. The FTC sought over $25 million based on allegations of deceptive marketing practices and obtained an ex parte temporary restraining order and a blanket freeze over corporate and personal assets.