Marc D. Powers

Partner

New York
T 212.589.4216  |  F 212.589.4201
"[Marc] is commended for 'aggressively and intelligently pursuing his clients' interests.'"
— Chambers USA 2014

Having practiced in securities regulation, litigation, and enforcement for more than 30 years, Marc Powers understands the legal, business, and regulatory environment surrounding his clients, where he confidently and aggressively—yet deliberately—acts on behalf of his diverse client base. As Leader of BakerHostetler's Securities Litigation & Regulatory Enforcement and Hedge Fund Industry practices, he is retained for complex securities and business litigation and SEC enforcement investigations, especially those involving high profile parallel proceedings. In the hedge fund industry, Marc's broad experience addresses each client's circumstance individually, providing proactive support throughout all aspects of a fund's operation, from inception to regulatory compliance to unavoidable litigations.

Marc is frequently invited to speak at premier conferences for the securities and hedge fund industries and appears regularly in the media commenting on the SEC and insider trading cases. Marc spoke at the May 2014 Managed Funds Association (MFA) Compliance Conference on a panel highlighting hedge fund law enforcement issues. He also presented at the May 2013 SkyBridge Alternatives (SALT) Conference on the JOBS Act. Additionally, Marc has appeared several times on Bloomberg Television's "Money Moves," where he discussed the government's effort to crack down on insider trading and the "failure to supervise" charges against SAC Capital and its founder. Marc's representation of Douglas Faneuil in the government's insider trading investigations and the criminal trial of Martha Stewart is chronicled in James B. Stewart's book, "Tangled Webs: How False Statements are Undermining America: From Martha Stewart to Bernie Madoff (2011)." Marc is ranked by Chambers USA in Litigation: Securities in New York.

Select Experience

  • Marc is representing the former Chairman, CEO, and founder of an energy company in a consolidated securities class action filed in Houston, alleging fraud arising from financial restatements and a secondary preferred stock offering. He is also advising the client in a related bankruptcy proceeding. 
  • Marc is representing an investment adviser being sued by the SEC in federal court in Columbus, Ohio, for alleged violations of the Custody Rule and other Investment Advisers Act violations.  
  • Marc is representing a Latin-American investment fund in an insider trading investigation by the SEC Los Angeles office concerning its purchases of a public company’s stock and options prior to a tender offer announcement. He has negotiated testimony and document production in such a way to minimize any possible legal exposure to the client.
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Experience

  • Marc is representing the former Chairman, CEO, and founder of an energy company in a consolidated securities class action filed in Houston, alleging fraud arising from financial restatements and a secondary preferred stock offering. He is also advising the client in a related bankruptcy proceeding. 
  • Marc is representing an investment adviser being sued by the SEC in federal court in Columbus, Ohio, for alleged violations of the Custody Rule and other Investment Advisers Act violations.  
  • Marc is representing a Latin-American investment fund in an insider trading investigation by the SEC Los Angeles office concerning its purchases of a public company’s stock and options prior to a tender offer announcement. He has negotiated testimony and document production in such a way to minimize any possible legal exposure to the client.
  • Marc has been representing an international investment banking firm located in Greenwich, Connecticut, in a securities class action and a related international investigation by the SEC, the Financial Conduct Authority in the U.K. and the Comision Nacional del Mercado de Valores in Spain. The matters arose from the failure and liquidation of an $850 million hedge fund with purported inflated portfolio valuations. Marc and his team developed a strategy to protect the interests of the client and minimize legal liability for the investment bank. Another case involving Chapter 15 of the Bankruptcy Code recognizing the liquidators’ foreign proceedings involving the hedge fund was successfully resolved shortly after a criminal case was filed against the hedge fund portfolio manager. Marc and his team guided the client through the parallel regulatory and civil litigations that developed throughout the matter, eventually resolving all matters through their diligence with no actions against the client by the government and a small class action settlement.
  • Marc has represented a well-known and highly successful South American businessman and his companies in several related federal and state litigations arising from an investment fraud involving a Swiss bank. He filed an appeal of an international arbitration lost by the client’s former counsel, resulting in an eight-figure settlement in favor of the clients. With that in hand, Marc leveraged that settlement to resolve for no payment by his clients several other cases which named them as defendants.
  • During an investigation by the SEC headquarters and the CFTC of a hedge fund and commodity pool operator alleging cornering of the market in Treasury futures and false statements made to market regulators, Marc relied on his understanding of the sophisticated nature of the hedge fund industry and markets to ensure that no manipulation charges were brought against his client in conjunction with the case’s settlement, based on books and records violations.
  • Marc is a member of the BakerHostetler team serving as court-appointed counsel to the Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS). One of the largest financial frauds in recorded history, the SIPA liquidation requires global investigations and litigation seeking tens of billions of dollars in worldwide asset recovery from hedge funds, funds of funds, investment banks, other financial institutions, investment managers, and other hedge fund fiduciaries. Marc’s primary focus to date has been the investigation and coordination of legal strategy for the SIPA Trustee’s actions involving the Rye Select, Tremont, and Merkin families of feeder funds. The Tremont settlement resulted in a recovery for the Customer Fund of over $1 billion and allowed the SIPA Trustee to move forward with a third interim pro rata distribution to BLMIS customers with allowed claims in the spring of 2013.
  • Marc represented the broker’s assistant who became a star witness in a high-profile SEC and criminal insider trading investigation, securities class action, and criminal trial of Martha Stewart. Marc worked through the whole process, and while his client purportedly initially misled authorities about the stock trades in question, his client's testimony played a crucial role in the conviction of his boss and a major business woman. Marc’s representation assisted in saving his client from probation or prison time.
  • Marc represented a Midwestern public corporation during a three-year investigation by the SEC Chicago office alleging violations of Sarbanes-Oxley 404, Regulation FD and stock manipulation by a hedge fund. Marc worked with the corporation’s counsel to ensure that no charges were brought against the Company or its officer (after a Wells Notice) as a result of the investigation.
  • Marc assisted in performing an internal investigation for a mutual fund board allegedly market timing and late trading mutual funds. Marc structured and led a large team of attorneys and developed tactics and strategies to lead the investigation during his complete immersion, which eventually was resolved with the SEC and New York State Attorney General for less sanctions and penalties than other similarly situated mutual funds.
  • Marc represented a bond trader’s assistant during an investigation by the SEC and U.S. Attorney's office in one of the first large internal investigations in the investment banking industry. The investigation was sparked by alleged phantom trades that caused a parent company to report a several hundred-million dollar loss. Not only was Marc involved in the case from its inception, despite his client not being criminally charged, the case also allowed Marc to be involved in the developing realm of internal investigations from its outset.

Recognitions

  • Powers, Marc DChambers USA: Litigation: Securities in New York (2014)
  • New York "Super Lawyer" in Securities Litigation (2006 to 2014)
  • SEC Sustained Superior Performance Award
  • Hofstra University Distinguished Alumni Award (2006)
  • Martindale-Hubbell: AV Preeminent

Memberships

  • Wolters Kluwer (CCH) Securities Regulation Advisory Board (2010 to present)
  • American Bar Association: Presidential Task Force on the Attorney-Client Privilege (2005 to 2009)
  • New York State Bar: Presidential Task Force on the Attorney-Client Privilege (2005 to 2009)
  • New York County Lawyers’ Association
    • Board of Directors (2002 to 2005)
    • Committee on Securities and Exchanges: Co-Chair (1997 to 2002)

News

Press Releases

Alerts

Articles

Services

Industries

Prior Positions

  • United States Securities and Exchange Commission (1980 to 1985)
    • Enforcement Division Staff Attorney
    • Branch Chief

Admissions

  • U.S. Supreme Court, 2009
  • U.S. Court of Appeals, Second Circuit, 2011
  • U.S. Court of Appeals, District of Columbia Circuit, 2006
  • U.S. Court of Appeals, Third Circuit, 2004
  • U.S. District Court, Eastern District of New York, 1981
  • U.S. District Court, Southern District of New York, 1981
  • New York, 1981

Education

  • J.D., Hofstra University School of Law, 1980
  • B.B.A., University of Wisconsin-Madison, 1977, Finance, with honors