Marc D. Powers

Partner

New York
T 212.589.4216  |  F 212.589.4201

"The ‘smart and strategically astute’ Marc Powers in New York leads ‘a vibrant practice’ that is prominent among investment banks and hedge funds."

— Legal 500 United States 2015

Having practiced in securities litigation, regulation 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. Since 2015, as noted below, he has successfully argued on three separate occasions before the Second Circuit Court of Appeals. 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 ranked by Chambers USA and Legal 500 as one of New York's leading lawyers in securities and shareholder litigation, and is commended by Chambers "for his impressive handling of high-stakes disputes, in particular in the securities area" (Chambers USA 2015). He formerly worked at the SEC and has been recognized as a New York Super Lawyer every year since 2006.

Marc is frequently invited to speak at premier conferences for the securities and hedge fund industries, and appears regularly in the media. He has spoken numerous times at Securities Industry and Financial Markets Association (SIFMA) and MFA Compliance Conferences. Marc has also presented at the SALT Conferences on Handling and Responding to SEC Investigations and the JOBS Act. Marc appeared on Fox Business News discussing the "Five Things to Do When the Feds Come Knocking," and has also appeared several times on Bloomberg Television's Money Moves, discussing insider trading. Marc's representation of Douglas Faneuil in the government's cases against 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). 

Select Experience

  • Marc and his team is advising a public company's special committee with respect to efforts by an activist hedge fund manager to achieve substantive changes within the company, including on strategic alternatives and a possible proxy contest. 
  • Marc represented a Moscow-based hedge fund manager and his investment funds in an SEC enforcement action alleging Ukrainian and Russian defendants hacked into several newswire services' computers and stole more than 100,000 confidential not-yet-public earnings announcements, earning illicit insider trading profits of more than $100 million. 
  • Marc represented an international investment bank in a securities class action and related civil and criminal international investigations by the SEC, U.S. Attorney’s Office and foreign regulators. The matters arose from the liquidation of an $850 million U.K.-based hedge fund with purported inflated portfolio valuations. Marc and his team developed a strategy to minimize the legal liability for the investment bank, ultimately settling his client in the class action for the payment of $500,000. Another case involving Chapter 15 of the Bankruptcy Code by the fund's liquidators was also successfully resolved. 
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Experience

  • Marc and his team is advising a public company's special committee with respect to efforts by an activist hedge fund manager to achieve substantive changes within the company, including on strategic alternatives and a possible proxy contest. 
  • Marc represented a Moscow-based hedge fund manager and his investment funds in an SEC enforcement action alleging Ukrainian and Russian defendants hacked into several newswire services' computers and stole more than 100,000 confidential not-yet-public earnings announcements, earning illicit insider trading profits of more than $100 million. 
  • Marc represented an international investment bank in a securities class action and related civil and criminal international investigations by the SEC, U.S. Attorney’s Office and foreign regulators. The matters arose from the liquidation of an $850 million U.K.-based hedge fund with purported inflated portfolio valuations. Marc and his team developed a strategy to minimize the legal liability for the investment bank, ultimately settling his client in the class action for the payment of $500,000. Another case involving Chapter 15 of the Bankruptcy Code by the fund's liquidators was also successfully resolved. 
  • Marc represented 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. The case was successfully settled for under $6 million with no contribution by the client.
  • Marc is representing and advising a court-appointed receiver in a New York State Department of Financial Services federal action against an automobile subprime lender and its owner accused of consumer fraud. He successfully defeated several applications by the owner to enjoin or defeat the receiver's sale of the loan portfolio and, on appeals to the Second Circuit Court of Appeals, successfully argued on three occasions before the Appellate Court.
  • Marc represented an investment adviser sued by the SEC in federal court in Columbus, Ohio, for alleged violations of the Custody Rule and other Investment Advisers Act violations. The civil action was settled without any admissions of wrongdoing.
  • Marc represented a Brazilian investment fund in an insider trading investigation by the SEC's Los Angeles office concerning the fund's purchases of a public company's stock and options prior to a tender offer announcement. He negotiated testimony and document production in such a way to successfully close the matter without action.
  • Marc has represented a well-known and highly successful Peruvian 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 to the Second Circuit Court of Appeals, which resulted 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 in all other cases that named them as defendants.
  • Marc has advised a private equity firm and multifamily office with proprietary investment funds, each in connection with SEC routine examinations, including preparing clients for likely examination issues, mock interviews, document production, interfacing with SEC staff and assisting in responses to the SEC. Both exams concluded with no negative effects upon either business. 
  • During an investigation by 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 was a member for five years 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. Marc's primary focus was 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 more than $1 billion. 
  • 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 tipped Stewart and initially misled authorities about the stock trades, his client's testimony played a crucial role in the convictions. Marc's representation assisted in saving his client from prison.
  • 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 fewer sanctions and penalties than other similarly situated mutual funds.

Recognitions

  • Chambers USA: Litigation: Securities in New York (2014 to 2016)
  • The Legal 500 United States (2015, 2016)
    • Recommended in Dispute Resolution: Securities Litigation – Defense
  • New York Metro "Super Lawyer" in Securities Litigation (2006 to 2015)
  • 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

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