November 21, 2020
Veteran Wall Street lawyer Aegis Frumento considers veteran Wall Street prosecutor Rudy Giuliani's legal strategy on behalf of the Trump re-election effort. For starters, Aegis conjures up Rudy's prickly cameo in the latest Borat movie, and that wacky press conference at the Four Seasons Total Landscaping parking lot, which is between a porn shop and a crematorium. And yet, there's a serious issue afoot here. Aegis concludes that the Trump lawsuits are failing because there were no facts to back them up. As Aegis notes, lawyers aren't supposed to bring cases that have no merit. Lawyers who promote frivolous lawsuits risk both court sanctions and professional ethics violations. And bad press, too.
Recently, BrokeAndBroker.com and Securities Industry Commentator publisher Bill Singer has been inundated with calls from industry associated persons dealing with the impact of the COVID pandemic, worrying about the future of their firms, and fearing rumors about reduced compensation. Attendant to such concerns are folks contemplating resignation or branch closures, and troubled about potential post-employment litigation against them by their former employer. Bill raised some of the issues with veteran industry recruiter Michael King of Michael King Associates.
The expression is "better late than never." Quite often, those words of wisdom prove to be sage advice. When it comes to Wall Street regulation, however, sometimes being late isn't better, particularly if you're the Respondent in a belated FINRA action.
You got personal expenses. You got business expenses. If you work for a company, they tend to reimburse your business expenses. The personal expenses -- well, you know, that's on you. Except for some folks, that normally bright line between what's personal and what's business gets blurred. If you're lucky, the company reimburses you for your personal expenses and no one's any the wiser. If you're not so lucky, you could lose your job, get charged with a crime, and you come off looking like a crook. Of course there are times when certain expenses are debatable. I know it. You know it. On the other hand, c'mon, let's not blow smoke up our respective you know whats. If you're going to try and scam your employer, don't complain if you get caught.
In October 2020, the SEC published both a press release and an Order disclosing the settlement In the Matter of Andeavor LLC. It seemed like the SEC's Chair and four Commissioners had reached a unanimous decision. They hadn't. The belated disclosure of a Dissent, however, rendered two dissenting commissioners as mere disembodied voices whispering to us from the shadows. Not the best way to enunciate policy or pursue regulation.