New York partner John Carney was profiled in the July 29, 2009, edition of Securities Law360 for his role as co-leader of the firm's national White Collar Defense and Corporate Investigations group.
Carney represents public corporations, officers, directors and employees, regulated entities and others in SEC investigations and criminal law enforcement investigations and related civil litigation. Based on his experience in regulatory and criminal enforcement matters and complex litigation, he has repeatedly been retained by audit committees, corporations, and senior officers of major public companies to advise them during investigations and design remedial compliance and corporate governance measures.
Asked to recount his most challenging case, Carney replied: "After nearly 20 years of practice as a trial attorney and former practicing CPA, I have to say my most challenging case was the Cendant securities fraud matter. The case involved more than nine years of false financial statements, covering all aspects of securities law from complex application of generally accepted accounting principles ("GAAP") to nuanced disclosure requirements. It was not however, the length of the case or the amount of money involved that challenged me, but rather keeping the trial from turning into a battle of the experts. We won because we were able keep on message in a way that was persuasive to the jury. Anyone can make simple facts seem complex, but making the complex simple—that's the secret to winning."
Carney noted that "keeping my client and myself invisible" is the accomplishment he is most proud of as an attorney. Carney went on to say that "winning a case at trial is rewarding, but the mere allegation by the government of misconduct and the related media coverage can cause lasting reputational damage. A real win is convincing the government not to bring charges in the first place. You'll never hear of my greatest successes because they never made the papers—and that is just fine with me and my clients."
According to Carney, meritless whistleblower complaints brought by disgruntled current and former employees is the the aspect of law in his practice area that is in need of reform. "Defending these matters waste corporate resources and divert the government from focusing on matters that genuinely require their attention," said Carney. He also believes the next wave of cases in his practice area will come from "securities enforcement and health care, both civil and criminal. The government is under tremendous pressure to stop fraud and crack down on waste and abuse. Increased investigations and prosecutions are a certainty."
Finally, asked what advice he would give a young lawyer interested in his practice area, Carney said, "Look down the road now and decide what type of practitioner you want to be in 20 years and then devise a plan to get the necessary experience. You don't need to have served in the government to conduct investigations or defend regulatory cases, but you do gain invaluable insight. Whenever possible, endeavor to be assigned to matters that will get you into court at a early stage in your career."