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Andrew W. Reich

Andy Reich’s practice includes representation of firms and individuals in investigations and enforcement proceedings by the SEC and securities self-regulatory organizations (SROs), as well as counseling broker-dealers with respect to compliance issues. He has represented clients in numerous investigations by the SEC, FINRA (f/k/a NASD), NYSE Regulation and other regulatory bodies. He has also represented clients in litigation in federal and state court and in FINRA and AAA arbitrations.

Securities Regulatory Defense

Mr. Reich has represented firms and individuals in investigations involving allegations of securities fraud, accounting fraud, market manipulation and insider trading, as well as alleged violations of federal laws and regulations and SRO rules regarding equities, municipal securities, issuer disclosure and reporting obligations under Regulation FD and Sarbanes-Oxley Act Section 404, FINRA registration, sales practices involving securities and insurance products (including New York State Insurance Regulation 60), research restrictions, private securities transactions, outside business activities, gifts, continuing education, trading by specialists (including trading ahead and interpositioning), short sales (including Regulation SHO), trade reporting, falsification of records, and failure to cooperate with regulators or to testify truthfully, among other issues. A large number of these investigations also involved allegations of inadequate broker-dealer supervision. Mr. Reich has succeeded in resolving many of these matters with no adverse action against the client.

Litigation and Arbitration

Mr. Reich has represented clients in securities-related litigations and arbitrations involving alleged securities fraud (including class action defense), breach of contract, breach of fiduciary duty, unfair competition, theft of trade secrets, employment discrimination, unsuitable sales practices and inadequate supervision. He has also represented clients in commercial litigations unrelated to securities and broker-dealer matters.

Examinerships and SEC/SRO Comment Process

Mr. Reich has played a leading role in Baker Hostetler’s work as Third Party Examiner monitoring remediation programs implemented by several major national and regional broker-dealers, arising from settlements with FINRA involving mutual fund sales practices. He also represented an association of NYSE floor brokers in the SEC comment process and in litigation regarding the NYSE’s “hybrid market” trading platform and merger with Archipelago Holdings Inc.

Transactional Matters

Mr. Reich has also represented clients in broker-dealer mergers and acquisitions, advising on applications for FINRA approval, SEC broker-dealer registration issues, state licensing requirements, disclosure obligations, due diligence and other issues.

Prior Experience

Prior to joining Baker Hostetler, Mr. Reich worked in regulatory enforcement at two of the nation’s major securities SROs. Immediately prior to joining the firm, he headed the Philadelphia Stock Exchange’s Enforcement Department, overseeing administration and directing the prosecution of violations of Exchange and SEC rules and the federal securities laws.

Previously, as Regional Counsel in the New York office of the NASD Department of Enforcement, Mr. Reich oversaw regulatory investigations and conducted disciplinary proceedings and appeals alleging violations of NASD, SEC and MSRB rules and the federal securities laws. In addition to numerous matters resolved by settlement, Mr. Reich conducted three successful evidentiary hearings before disciplinary panels and two successful appeals before the National Adjudicatory Council. He also advised the NASD staff regarding firms’ applications for approval to become NASD members, to change ownership or to expand business operations, as well as regarding statutory disqualification issues.

Memberships

Mr. Reich is a member of the American Bar Association (Sections of Business Law and Litigation, Committee on Federal Regulation of Securities and Subcommittee on Civil Litigation and SEC Enforcement Matters). He is also a member of the Securities Industry and Financial Markets Association (SIFMA) Compliance & Legal Division and the New York City Bar Association.

Writing and Speaking Engagements

• Moderator of panel on SRO and PCAOB enforcement with heads of enforcement of FINRA and NYSE Regulation and Deputy Director of PCAOB, “Financial Industry Regulators Speak 2009” (CLE program at New York County Lawyers Association), October 2009
• Speaker on the topic of SEC regulation of indexed annuities, “Current Issues in Insurance Regulation 2009” (CLE program at New York City Bar Association, co-sponsored by American Bar Association), April 2009
• Speaker on the topic of SRO enforcement, “Annual Review of Developments in Business and Corporate Litigation,” ABA Business Law Section Spring Meetings, April 2006 and March 2007
• Co-Author, “Criminal and Enforcement Litigation,” Annual Review of Developments in Business and Corporate Litigation (ABA publication), 2006, 2007 and 2008 editions
• Speaker, “Soft Dollars,” CCH Wall Street Fall Securities Compliance Conference, September 2006
• Co-Author, “Future of Mutual Fund Governance Rules Remains Unclear,” ABA Securities Litigation Journal, Fall 2005
• Speaker on the topic of SEC investigations, “D&O Liability After Ebbers and Scrushy” (CLE program sponsored by Strafford Publications), August 2005