Lawrence Gerschwer

Served as trial counsel to a former Wall Street investment banker who was charged with insider trading in the Southern District of New York for allegedly “tipping” his father with confidential information ahead of corporate mergers and acquisitions. Represented a former director of a major financial institution in an SEC investigation related to the marketing of a foreign exchange trading strategy to high net worth individuals; undertook representation after the client had received a Wells Notice from the SEC, and then immediately engaged with the SEC staff to dissuade them from seeking authorization from the SEC to file charges. Following the Wells submission and numerous meetings with the staff, including a presentation to the co-directors of the Enforcement Division, the staff terminated the matter without filing charges and provided us with a declination letter on behalf of the client. Conducted an internal investigation on behalf of a major financial institution into alleged mismarking of positions by one of the financial institution’s traders. Represented three supervisory traders at a major financial institution in SEC investigations regarding allegations of unauthorized trading and failure to supervise, where clients provided SEC testimony but no charges were ever brought against them. Represented an alleged downstream "tippee" in parallel SDNY criminal and SEC civil enforcement investigations of alleged insider trading at hedge funds. Represented an analyst in civil litigation alleging stock manipulation by short sellers. Represented a supervisor at a broker-dealer in an investigation by state securities regulators into allegations of manipulation in the market for Auction Rate Securities. Represented a senior portfolio manager at an asset management firm in parallel SDNY criminal and SEC civil enforcement investigations of potential fraud. Represented multiple employees of a multinational bank in investigations by the U.S. Attorney’s Office, state criminal prosecutors, SEC, CFTC, US banking regulators and foreign regulators regarding an alleged scheme to overvalue a commodities derivative trading portfolio. Represented the former CFO of one of the largest US mortgage originators in parallel EDNY criminal and SEC civil enforcement investigations of allegations that securities fraud led to the bankruptcy of the company, as well as in related civil litigation. Represented the founder and former CEO of a high-tech company in parallel DOJ and SEC investigations of alleged securities fraud in connection with improper revenue recognition and stock options backdating; tried two criminal jury trials, both of which ended in mistrials after the juries hung on all counts. Represented an auditor at an international accounting firm in an SEC investigation involving allegations of securities fraud and improper professional conduct arising out of the audit of a public company at which numerous members of top management were criminally convicted of engaging in a massive, collusive accounting fraud; after reviewing the Wells submission submitted on behalf of the client, the SEC staff terminated the investigation without commencing an action. Represented a foreign national and employee of a Fortune 100 multinational corporation in cross-border investigation of potential FCPA and criminal antitrust violations. Represented the principals of a large real estate appraisal firm in an investigation by a state Attorney General into the role of property appraisers in the mortgage crisis. Represented an executive of a large mortgage originator in an investigation by federal banking regulators into the relationship between mortgage originators and appraisers and its impact on the credit crisis. Conducted an internal investigation into potential FCPA violations at a foreign subsidiary of a Fortune 500 multinational corporation; conducted more than 60 interviews of employees, reviewed business lines and relationships with key customers and distribution channel, and conducted forensic analysis of accounting records and internal controls; investigation also included a review of business units in more than 15 countries to assess FCPA risks, and the preparation of revised internal guidance and compliance procedures. Representing numerous employees of a Swiss bank in parallel investigations by the DOJ, SEC and IRS into allegations of assisting tax fraud by U.S. taxpayers Conducted an internal investigation into allegations that a bank had submitted false information to federal banking regulators in connection with “stress tests”. Conducted an internal investigation into allegations concerning mortgage servicing and foreclosures, including allegations of "robosigning," at a major financial institution; interviewed dozens of employees, reviewed documents and analyzed foreclosure process; presented findings to senior bank management, banking regulators and U.S. the Department of Justice.

Larry Gerschwer was a panelist at the New York University (NYU) Law School forum, "The Legalization of Corruption in the United States," at Vanderbilt Hall in New York City. The panelists explored the evolution of U.S. anti-corruption efforts from the post-Watergate era, marked by the enactment of the Foreign Corrupt Practices Act (FCPA) targeting foreign officials, to recent U.S. Supreme Court rulings that have arguably eroded domestic corruption laws. The panel included NYU Law professors Jennifer Arlen and Kevin Davis, as well as Kristen Mace, the current chief of the criminal division at the U.S. Attorney’s Office for the Eastern District of New York.

Join us for a discussion where leaders from Barnes & Thornburg’s Financial and Regulatory Practice Group will discuss various issues related to best practices for disclosures as COVID-19 continues spreading across the country and the world.