Securities Enforcement

The CSG Law Securities Enforcement Group represents broker-dealers, investment advisers, hedge funds, public and private companies, executives, registered representatives, supervisors, and associated persons in FINRA examinations, investigations, and enforcement proceedings, as well as FINRA arbitrations and related litigation.

In every matter, we take a practical, client-focused approach, working closely with clients to develop strategies tailored to their business needs and strategic goals.

Regulatory Defense

Led by Christopher J. Kelly and Lisa M. Colone—both former senior FINRA Enforcement officials and federal prosecutors—the CSG Law Securities Enforcement Group combines senior regulatory leadership, trial experience, and deep securities-industry knowledge to give clients practical advice regarding how FINRA and other regulators investigate conduct and pursue enforcement actions.

At FINRA, Mr. Kelly and Ms. Colone supervised more than 200 enforcement attorneys and investigators and oversaw thousands of enforcement actions. This experience gives them insight into FINRA’s priorities, practices, and internal decision-making, including how examination findings, customer complaints, trading activity, supervisory issues, and potential rule violations may lead to enforcement referrals or disciplinary action.

Our highly experienced team develops practical, creative strategies designed to resolve matters before referral, narrows disputed issues, achieves informal resolutions, avoids public disciplinary action where possible, and litigates when necessary.

The CSG Law Securities Enforcement Group also defends individuals and entities in connection with inquiries, investigations, and enforcement actions brought by the U.S. Securities and Exchange Commission (SEC), Commodities Futures Trading Commission (CFTC), New York Stock Exchange (NYSE), Nasdaq, Chicago Board Options Exchange (Cboe), other self-regulatory organizations (SROs), and state securities regulators and attorneys general.

Our lawyers have favorably resolved matters brought by these regulators, including allegations involving:

Fraud
Insider trading
Anti-money laundering (AML) violations
Market manipulation
Best execution
Regulation Best Interest (Reg BI)
Systemic supervisory failures

Arbitration Defense

The CSG Law Securities Enforcement Group defends broker-dealers, financial-services firms, executives, supervisors, registered representatives, and associated persons in customer complaints, employment disputes, restrictive-covenant claims, trade-secret matters, and industry disputes before FINRA Dispute Resolution Services and other arbitration forums. With more than 16 years of combined FINRA experience, the group includes attorneys who understand FINRA arbitration procedures, forum rules, panel dynamics, discovery, motion practice, settlement strategy, hearing preparation, and advocacy.

As former federal prosecutors and experienced trial lawyers, they help clients resolve arbitration claims efficiently through early case assessment, targeted discovery, favorable pre-hearing settlements, and hearing advocacy.

Representative Matters

Resolved a FINRA investigation of an investment-banking broker-dealer concerning its supervision of outside business activities with a cautionary letter only.
Resolved a FINRA investigation of co-executives of a broker-dealer involving alleged private securities transactions with cautionary letters only.
Resolved a FINRA investigation of a broker-dealer concerning alleged misrepresentations in the sale of private placements with a cautionary letter only.
Resolved a FINRA investigation of a nationwide broker-dealer concerning alleged due diligence failures with a cautionary letter only.
Resolved a FINRA investigation of a large broker-dealer concerning its alleged failure to supervise a broker who misappropriated client funds with no further action.
Resolved a FINRA investigation of a mid-sized broker-dealer concerning its alleged failure to supervise variable annuity sales with a cautionary letter only.
Resolved a FINRA investigation of a large broker-dealer concerning its alleged failure to supervise trade advertisements with a cautionary letter only.
Resolved a FINRA investigation of a broker concerning allegedly unsuitable sales of variable insurance products with a cautionary letter only.
Resolved a FINRA investigation of an investment-banking broker-dealer concerning alleged net capital violations with a cautionary letter only.
Resolved a FINRA investigation of a wirehouse concerning alleged violations of customer reserve and vendor display rules with a cautionary letter only.
Resolved a FINRA investigation of a securities trader concerning market manipulation allegations with a cautionary letter only.
Resolved a FINRA investigation of a broker concerning alleged insider trading with no further action.
Resolved a FINRA investigation of a broker concerning alleged Reg BI violations involving recommendations of corporate bonds and margin trading with no further action.
Resolved a FINRA investigation of a proprietary trading firm concerning alleged net capital violations with a cautionary letter only.
Resolved an SEC investigation of a large broker-dealer involving allegations of fraud and elder abuse by a former broker with no further action.
Persuaded a claimant in a FINRA arbitration to withdraw his claims against a broker-dealer client before the client filed an answer.
Resolved a CFP (Certified Financial Planner) Board investigation of four brokers involving alleged examination misconduct with no further action.
Represented a large broker-dealer and broker in a restrictive-covenant and trade-secrets case before FINRA Dispute Resolution; all claims were voluntarily dismissed without any monetary payment.
Prosecuted restrictive-covenant claims for a large broker-dealer against a former broker and his new firm, resulting in a six-figure settlement.