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OVERVIEW

David Slovick
Partner

Washington, D.C.

1717 Pennsylvania Avenue N.W.
Suite 500
Washington, D.C. 20006-4623

P 202-371-6357

F 202-289-1330

OVERVIEW

David Slovick
Partner

Washington, D.C.

1717 Pennsylvania Avenue N.W.
Suite 500
Washington, D.C. 20006-4623

P 202-371-6357

F 202-289-1330

Drawing on his extensive experience as a senior enforcement attorney with the two principal U.S. financial regulatory agencies, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), David Slovick’s practice focuses on enforcement and compliance matters arising under the federal laws and regulatory rules governing the derivatives and securities markets.

OVERVIEW

Drawing on his extensive experience as a senior enforcement attorney with the two principal U.S. financial regulatory agencies, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), David Slovick’s practice focuses on enforcement and compliance matters arising under the federal laws and regulatory rules governing the derivatives and securities markets.

David regularly represents financial services firms and individuals in investigations and litigation conducted by the CFTC, the SEC, the Financial Industry Regulatory Authority, CME Group, and other regulatory agencies and organizations. His experience covers the spectrum of enforcement and regulatory matters, including derivatives and securities trade practices, disclosure fraud, insider trading, market manipulation, issuer statutory disqualification, and derivatives and securities regulatory compliance. 

David served for nearly a decade at the CFTC and the SEC where he led numerous administrative investigations and federal court actions involving a broad range of conduct in the derivatives and securities markets. 

While at the CFTC, David successfully represented the government 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. During his five years at the agency he also investigated and litigated a broad array of cases involving futures and swaps trading and clearing practices, commodity pool and commodity trading advisor fraud, futures and foreign exchange Ponzi schemes, off exchange binary options trading, failure to supervise, false statements, and books and records violations. Many of the matters David led at the CFTC involved parallel investigations brought together with the SEC and other governmental agencies and self-regulatory organizations (SROs). 

During his four years at the SEC, David led numerous investigations and federal court actions involving securities trade practice violations, securities offering and disclosure fraud, accounting fraud, mutual fund fraud, insider trading, failure to supervise, aiding and abetting, internal corporate controls, books and records, and options trading. 

Before joining Barnes & Thornburg, David was a private practitioner at an AmLaw 100 law firm, where his practice focused on the defense of CFTC, SEC, and SRO enforcement matters and derivatives and securities regulatory counseling. 

He regularly contributes articles addressing regulatory and enforcement topics to professional publications including Futures & Derivatives Law Report, Securities Regulation Law Journal, and Securities Law 360.

David is not regularly admitted to practice law in the local courts of the District of Columbia and is working under the supervision of a member of the D.C. Bar pending his admission. 

Professional and Community Involvement

Member, ABA Futures and Derivatives Law Committee

Honors

SEC Chairman’s Award for Excellence, Securities and Exchange Commission
Experience

Selected Private Practice Matters

  • 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.

EXPERIENCE
Publications

Selected Publications

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.

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