Friday, June 6, 2014
An attorney who is under investigation by the SEC has been suspended for failure to cooperate by the New York Appellate Division for the First Judicial Department.
The [Departmental Disciplinary] Committee commenced a sua sponte investigation into respondent's conduct after receiving a copy of an SEC complaint against respondent and a Cease and Desist order. The SEC complaint was based on charges surrounding respondent's role as a transaction manager within an investment banking entity that mislead investors in a collateralized debt deal during the housing market crisis (2007-2008). Respondent settled the matter with the SEC and consented to the Cease and Desist Order wherein she agreed to a one-year suspension without admitting or denying the SEC's allegations. Upon receiving a copy of the complaint along with the Cease and Desist order, the Committee made a series of attempts to contact respondent.
The court recites the extensive efforts to secure a response that ultimately led to
...the Committee received a handwritten letter from respondent dated February 19, 2014, which said: "I will not be filing an answer to the complaint or otherwise participate; in this investigation . . . So go ahead and disbar me for failure to cooperate'." Upon receipt of respondent's letter, the Committee wrote her to offer the chance to document her claimed health issues with medical records within 10 days. Respondent did not reply.
The SEC web page provides details about the underlying complaint. (Mike Frisch)