David Slovick

Selected Private Practice Matters

• Represents former JPMorgan investment banker in an appeal to the Second Circuit challenging collateral associational bars imposed in an SEC enforcement action  
• Represents alleged tippee in the SEC’s Motley Fool “hack-to-trade” insider trading litigation
• Represents a senior officer in parallel CFTC, SEC and DOJ investigations into FTX Trading, Ltd. and affiliated entities
• Represents a senior officer of Infinity Q Capital Management LLC in parallel CFTC, SEC and DOJ litigation  
• Represented registered broker-dealer, investment adviser and foreign commodities broker in CFTC investigation into deficient Form 40 Large Trader reports
• Represents a registered investment adviser in SEC investigation into purported failure to supervise and off-channel communications violations
• Represents an intermediary firm in a CFTC enforcement investigation involving trading in OTC propane derivatives
• Represents a group of precious metal dealers in CFTC enforcement investigations into purported disclosure violations arising under the Commodity Exchange Act
• Represented an investment adviser in an SEC enforcement investigation involving inter-fund loan and cash transfer disclosures
• Represented a multinational bank in a state attorney general investigation into alleged violations of the state’s False Claims Act
• Represented a group of investment funds in a FINRA investigation into securities registration and compliance implications of tax-exempt fund offerings
• Represented a multinational bank in a CFTC enforcement investigation into alleged manipulation of the credit default swap market arising from submissions to the ISDA Credit Determinations Committee. The CFTC closed its investigation without bringing charges against the bank.* 
• Represented a multinational bank in a CFTC position limits enforcement investigation involving the assumption by the bank of credit default swap positions from an FCM that failed as a result of the 2008 financial crisis. The matter was resolved before litigation for a nominal civil penalty.* 
• Represented a futures trader employed by a multinational bank in a CME Group enforcement investigation into alleged wash trading on a CME futures contract market. The matter was resolved through a warning letter, without charges being brought by CME.*
• Represented an investment adviser and broker dealer in a wide-ranging SEC enforcement investigation into the payment of 12b-1 fees, mutual fund share class selection practices, “step-out” trade fee arrangements, forgivable loan payments, and disclosure and conflict-of-interest issues related to these subjects*
• Represented a multinational bank in an enforcement investigation conducted by the U.S. SEC and Brazilian SEC involving alleged front-running by a New York-based bank trader of securities orders received from the bank’s South American securities desk. The matter was resolved without charges being brought against the bank.* 
• Represented the marketing director of a New York-based hedge fund in an SEC enforcement investigation into alleged disclosure violations arising from the sale of interests in the fund. The SEC closed its investigation without bringing charges against the marketing director.* 
• Represented a multinational bank in a FINRA enforcement proceeding arising from alleged violations of the SEC’s net capital and customer protection rules. The matter was resolved before litigation for a nominal civil penalty.* 
• Represented a senior executive of a public company in an SEC administrative action arising from purported misrepresentations in the company’s public financial statements and violations of the SEC’s internal controls rules. The matter was resolved before litigation with no civil penalty or disgorgement order and no injunction.* 
• Regularly counseled a multinational bank concerning SEC statutory disqualification and FINRA membership revocation issues. The counseling involved the interpretation of dozens of securities law provisions and SEC and FINRA rules, as well as SEC and FINRA guidance.* 
• Regularly counseled a multinational bank concerning compliance with various CFTC rules and regulations, including the CFTC’s “early warning” rules and other provisions of the Dodd-Frank Act*     

Selected Government Matters

• Represented the CFTC in a federal court action arising from multi-billion dollar intra-bank stock futures trades, the largest wash sale case in the CFTC’s history*
• Represented the CFTC in parallel CFTC and SEC federal court actions arising from a $1.5 billion international Ponzi scheme involving violations of the anti-fraud provisions of the Commodity Exchange Act and the Securities Exchange Act* 
• Represented the CFTC in parallel CFTC, SEC, and DOJ federal court actions arising from a $190 million international Ponzi scheme involving violations of the anti-fraud provisions of the Commodity Exchange Act and the Securities Exchange Act* 
• Represented the CFTC in a federal court action arising from off-exchange binary options trading involving violations of the Commodity Exchange Act’s prohibitions against off-exchange options trading and false reporting* 
• Represented the SEC in a federal court action arising from a mutual fund’s fraudulent misrepresentations related to the valuation of fund assets. The case involved violations of the anti-fraud provisions of the Investment Advisers Act and the Securities Act* 
• Represented the SEC in a federal court action arising from insider trading in the shares of an open-end mutual fund. The first case of its kind, it involved violations of the anti-fraud provisions of the Securities Exchange Act.*
• Represented the SEC in parallel SEC and DOJ federal court actions arising from a multi-million dollar stock manipulation scheme involving violations of the anti-fraud provisions of the Securities Exchange Act and the Securities Act*  

*These matters occurred before joining Barnes & Thornburg.

Selected Publications 

The Supreme Court Can't Fix The SEC's In-House Court Issue, Securities Law 360, July 2023

Deference and its Discontents: The Supreme Court’s Bid to Remake the Administrative State, New York University School of Law Compliance & Enforcement Blog, June 2022 

The “Capital Punishment” of the Securities Industry: Reconsidering the Reach of Collateral Bars in SEC Enforcement Actions, Futures & Derivatives Law Report, October 2021

Is Injunctive Relief in Civil Enforcement Actions Subject to a Statute of Limitations? Probably, Futures & Derivatives Law Report, September 2020

Supreme Court Scales Back SEC’s Disgorgement Remedy in Liu v. SEC, Hedge Fund Law Report, July 2020

High Court Missed Chance To Define SEC Enforcement Limits, Securities Law 360, June 2020

Equitable Tolling in Government Enforcement Actions After Kokesh v. Securities and Exchange Commission, Futures & Derivatives Law Report, December 2019

Automatic Disqualification Under the Federal Securities Laws and the Financial Industry Regulatory Authority’s Membership Rules, non-public client distribution, Nov. 2016* 

How to Fix the SEC, Securities Law 360, March 2009*

Scienter and Section 20(e): A New Consensus on Aiding and Abetting Liability in SEC Enforcement Actions, Securities Regulation Law Journal, Dec. 2008*

Loss Causation: A Significant New Burden, Securities Law 360, April 2008* 

The Department of Justice’s Revised Waiver Policies Under Deputy Attorney General Paul J. McNulty: An Overview and Critique, Futures & Derivatives Law Report, June 2007* 

Criminal and Civil Investigations: United States v. Stein and Related Issues, Practicing Law Institute Securities Litigation & Enforcement Handbook, 2006*

The Dilemma Remains: The Collateral Effect of Disclosing Attorney-Client Privileged Communications and Attorney Work Product to Government Agencies, Futures & Derivatives Law Report, May 2006* 

*These were published before joining Barnes & Thornburg.