TOP LITIGATION AT TORNEYS
SCOTT M. ANDERSEN
ANDERSEN, P.C.
Scott M. Andersen is the
principal at Andersen, P.C., a
securities regulatory defense
law firm. Andersen was
formerly a deput y regional
chief counsel at FINRA, where
he oversaw FINRA enforcement cases prosecuted in the
Western United States. Andersen has broad knowledge in
regulatory investigations and enforcement actions as a
former securities regulator with over 19 years of experience.
He has led complex criminal and civil prosecutions for
the Investor Protection Bureau at the N.Y. State Attorney
General's office, the NYSE and FINRA. He has represented
EB-5 participants, including a regional center, EB-5 issuers
and a market intermediary in investigations conducted by
the SEC and FINRA.
WHAT TRENDS ARE YOU SEEING WHEN
IT COMES TO EB-5 LITIGATION? ANY
IMPACT FROM THE NEW
REGULATIONS?
The SEC is dedicated to ensuring that EB-5 securities
offerings meet the requirements of the federal securities
laws. The SEC has focused on whether EB-5 offerings qualify
for an exemption from registration, unregistered broker-
dealer activities and fraud. The SEC has also sued a number
of regional centers and others for fraud relating to EB-5
capital raising, often for misappropriating investor funds. The
SEC will continue to closely monitor the industry to protect
investors. FINRA is also involved in monitoring its members’
compliance with FINRA rules, such as suitability, AML,
advertising, due diligence and supervision.
WHAT HAS BEEN YOUR MOST
IMPACTFUL LITIGATION CASES,
AND WHY?
My practice is focused on assisting clients in addressing
regulatory investigations by the SEC and FINRA. Often, EB-5
securities offerings involve immigration, real estate and other
professionals who have not had extensive experience in the
requirements of the U.S. securities laws and have made
mistakes. Addressing errors previously made to bring a
program into compliance with the federal securities laws, and
explaining the facts and corrective actions to regulators to
achieve a good result for a client, improve the reputation of
the industry and protect investors.
BOB CORNISH
ANDERSON KILL LLP
Bob Cornish is a shareholder
in the Washing ton , D.C.
offices of Anderson Kill LLP,
which is based in New York.
Cornish routinely handles SEC
enforcement, litigation and
compliance-related matters for participants in the EB-5
industry, leaning on his experience as a former Series 24
principal with a broker-dealer and as a compliance officer
for institutional asset managers. Cornish is a member of the
EB-5 Securities Roundtable and is recognized as a “go-to”
attorney on broker-dealer compliance and regulatory matters
of the industry. Cornish has also been recognized as a Super
Lawyer in securities litigation and is rated AV Preeminent by
Martindale-Hubbell.
WHAT NEW TRENDS ARE YOU SEEING
WHEN IT COMES TO EB-5 LITIGATION?
ANY IMPACT FROM THE NEW
REGULATIONS?
Litigation in the EB-5 arena continues to evolve as the industry
matures. Industry participants are now more sophisticated in
understanding their abilities to seek legal remedies, especially
in matters involving marketing and placement agents. Likewise,
investors with redeployment issues and those who may have
been defrauded are becoming more aware of their options and
remedies, not only in the U.S. legal forums, but also in alternative
forums such as arbitration and mediation. One should expect
continued enforcement focus on EB-5 by the SEC and FINRA in
more focused and discrete areas of licensing and compliance
procedures in the coming months.
WHAT HAVE BEEN YOUR MOST
IMPACTFUL LITIGATION CASES,
AND WHY?
As much of my practice in the EB-5 arena deals with
enforcement matters before the SEC, FINRA and state
securities regulators, handling these matters are highly
impactful. Both industry participants and regulators tend to
learn things from each other about their respective roles,
which is a good thing on both sides. The EB-5 industry wants
knowledgeable regulators who understand the nuances of
their businesses. Likewise, industry participants often
provide the best “real world” experience for regulators who
are often handling issues that may not appear as simple as
they may initially seem.
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