When faced with an insider trading investigation, you are now in potentially perilous waters confronting a federal civil, law-enforcement agency with dedicated resources, institutional knowledge and a “playbook” on how it will conduct its inquiry to determine whether you traded on material, non-public information.
David R. Chase spent several years serving as Senior Counsel in the SEC’s Division of Enforcement where he investigated and prosecuted insider trading. These years inside the SEC provided him with a first-hand understanding of the internal processes, strategies and investigative tactics that drive an investigation. Bottom line: he knows the SEC’s “playbook.”
Here is how his “insider” knowledge translates into a critical strategic advantage for your defense:
- Anticipating the SEC’s Next Investigatory Step
Having been on the other side, Mr. Chase can often exactly predict the next investigative steps the SEC staff will take. This allows him to proactively put in place a tailored, strategic defense strategy designed to beat the investigation and avoid charges.
- Identifying Weaknesses in the SEC’s Prosecution Theory and Then Exploiting Them
Mr. Chase knows what factors the SEC looks for in determining whether it has a strong, viable and prosecutable insider trading case versus those that are tenuous, circumstantial and run the real risk of losing in court. With this knowledge gained from working in the SEC’s Miami Office, he can reverse engineer the SEC’s case and identify its weaknesses to best leverage a favorable outcome for his clients.
- Effective Negotiation Skills to Leverage the “Subtle Issues” in SEC Settlements
The vast majority of SEC investigations never go to trial. In fact, the greatest defense successes are those you never read about because the investigations are closed and never made public. Thus, most SEC cases, to the extent the SEC recommends charges, are settled, typically through complex negotiations. Mr. Chase’s experience arms him with the ability to identify the “subtle factors” — internal agency decision-making, settlement strategy, policy considerations and grey-area, unsettled law, that may directly positively influence the outcome of a settlement, frequently resulting in favorable terms for his clients.
- The “Art” of Cooperation and Its Advantages
The SEC can and does reward an individual’s cooperation under the right circumstances. Strategic, meaningful cooperation can provide significant benefits to a client that pursues this strategic path. Such benefits include: a reduction in, or elimination of, a civil penalty, lesser charges and/or more lenient non-monetary remedies, or in some instances a decision not to prosecute. However, proactively cooperating a client with the SEC is much more of an art than a science. Mr. Chase uses his extensive background and seasoned “gut” to navigate clients through the process, including “proffers” and other techniques, to maximize their value as cooperating witness in order to position them to reap the greatest benefits from their efforts.
- Attempting to Avoid Criminal Referrals From the SEC to the Department of Justice
By far, one of the greatest risks of an SEC investigation is that it gets referred to the Department of Justice (DOJ) for potential criminal prosecution. As a former Special Assistant United States Attorney in the Southern District of Florida, Mr. Chase has experience in the criminal side of securities fraud investigations and prosecutions, allowing him to build a defense that accounts for both civil and criminal exposure. He understands well the intricacies and strategies involved in parallel proceedings.
Contact Former SEC Prosecutor David Chase
In conclusion, when faced with potentially life-changing SEC and/or DOJ insider trading investigations, there is simply no substitute for institutional knowledge. By hiring a former SEC prosecutor and former Special Assistant US Attorney, you ensure that your defense is not timid and reactive, but strategically proactive, designed to beat the investigation and result in a declination of prosecution.
