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Securities Enforcement

At Roshka DeWulf & Patten, we have a track record in complex and high-stakes securities enforcement investigations and proceedings that few Arizona firms can match. Our experience, creativity and strategic thinking enable us to assess each case efficiently and effectively as we develop the best defense strategy.

We have successfully defended clients in enforcement actions and responded to inquiries and subpoenas from the United States Securities and Exchange Commission ("SEC"), the Securities Division of the Arizona Corporation Commission ("ACC"), the Financial Industry Regulatory Authority ("FINRA") and numerous State securities agencies. Roshka DeWulf & Patten has substantial experience defending enforcement actions arising under the Securities Act of 1933 (the "Securities Act"), the Securities Exchange Act of 1934 (the "Exchange Act"), the Investment Advisers Act of 1940 (the "Advisers Act"), the Arizona Securities Act, the Arizona Investment Management Act and FINRA's Rules.

Our lawyers are skilled and experienced in representing financial service firms, public and private companies, boards of directors, special committees of boards of directors, accounting firms and individuals who are facing multiple and often overlapping investigations from the SEC, FINRA, the ACC and other state securities regulators.

Roshka DeWulf & Patten has handled regulatory investigations and proceedings or internal issues related to such issues as:

  • Securities fraud in the form of material misrepresentations and alleged failures to disclose material information
  • Sale of unregistered securities
  • Suitability of stock and bond recommendations
  • Suitability of recommendations involving private placements
  • Supervisory deficiencies
  • Unauthorized transactions
  • Churning
  • Options backdating
  • Accounting cases involving revenue recognition, errors and irregularities and restated financial statements
  • Insider trading
  • Private placements and other exempt transactions and securities
  • Breaches of fiduciary duties by investment adviser misrepresentations and unsuitable portfolio allocations
  • Variable annuity suitability and exchanges
  • Mutual fund suitability and exchanges
  • Forgery
  • Misappropriation of client assets
  • AML compliance

NOTABLE MATTERS:

  • Representation of the board of directors of the Baptist Foundation of Arizona. Our representation involved resolving the regulatory concerns of the SEC, the ACC and other State securities regulators while working with the Foundation's Board to preserve funds invested in this $560 million Ponzi scheme.
  • Representation of the former president of a mortgage banker and its affiliated securities arm during a joint SEC and ACC investigation regarding the entities sale of over $500 million in investments.
  • Defense of the former CFO of a public company during an internal corporate investigation, the SEC investigation and the enforcement action filed against our client alleging accounting irregularities to inflate financial results and overstate net income in violation of the antifraud provision of the Securities Act and the antifraud and books and records provisions of the Exchange Act.
  • Defense of the president of an international firm in an investigation and subsequent enforcement proceeding brought by the ACC involving allegations concerning unregistered securities and securities fraud arising out of the sale in Arizona of approximately $25 million of universal leases relating to interests in Cancun hotels.
  • Defense of an investment adviser in an SEC investigation and proceeding alleging misrepresentation of investment risks and failing to disclose a side compensation agreement involving a $10 million investment pool in violation of the Securities Act, the Exchange Act and the Advisers Act.
  • Representation of a former vice president of investor relations for a public company during an SEC investigation involving concerns of insider trading.
  • Representation of the former president of a trust company during an investigation conducted by the SEC and the New York Attorney General's Office involving late trading of mutual funds.
  • Representation of numerous registered representatives in investigations and proceedings brought by FINRA charging violations of its Rules concerning suitability, supervisory deficiencies, unauthorized transactions, misrepresentations and conduct inconsistent with just and equitable principles of trade.
  • Representation of a registered representative and certified financial planner during a FINRA investigation into the suitability of investment recommendations and defense of this individual in a hearing before the CFP board.
  • Defense of a registered representative in a proceeding before the Utah Securities Division alleging violations of the Utah Securities Act in connection with the investment recommendations to a customer.
  • Defense of a registered representative charged by FINRA with violations of its rules and the federal securities laws in connection with the recommendations to purchase variable annuities.
  • Representation of a registered representative during a FINRA investigation into recommendations concerning an options program developed by the representative.
  • Defense of an ACC proceeding involving a mortgage banker accused of violating the registration and antifraud provisions of the Arizona Securities Act.
  • Defense of a certified public accountant/registered representative in an ACC enforcement proceeding alleging the unregistered sale of securities and misrepresentations regarding an investment into a fictitious foreign currency exchange program.

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