Andrew W. Reich

Counsel

New York
T +1.212.589.4222
F +1.212.589.4201

Overview

Andy Reich's practice includes representation of broker-dealers and individuals in investigations and enforcement proceedings by the Financial Industry Regulatory Authority (FINRA), other securities self-regulatory organizations (SROs), the Securities and Exchange Commission (SEC) and other bodies. After working for several years as a commercial litigator at a major national law firm, Andy worked for another several years on the side of the regulators, first as an enforcement attorney for FINRA (then known as the National Association of Securities Dealers [NASD]) and then as head of enforcement at the Philadelphia Stock Exchange. While at FINRA, Andy litigated several disciplinary hearings and appeals, and advised the Member Regulation staff regarding firms' applications for approval to become members, change ownership or expand business operations.

In his current practice, Andy applies his prior experience in representing clients facing regulatory and governmental inquiries and proceedings, and in advising clients regarding a broad spectrum of broker-dealer and securities issues. Andy focuses his representation of each client on that client's particular needs, seeking to avoid regulatory problems from the outset or to make them go away with minimal damage to the client. When the situation calls for litigation, including defending clients in regulatory and administrative proceedings, Andy is fully prepared and capable of litigating to pursue his clients' interests. He has spoken at bar association events and CLE presentations on subjects including best execution, soft dollar arrangements, SEC regulation of equity-indexed annuities, the role of "cooperation" in SEC investigations, director and officer liability in SEC investigations, and annual developments in SRO enforcement cases.

Select Experience

  • Regulatory Investigations
  • Represented numerous broker-dealer and individual clients in investigations by FINRA and other SROs, including matters in which the client was the primary focus of the investigation, which resulted in no disciplinary action taken against the client.
Other Representations of Broker-Dealers and Financial Services Firms
  • Represented a financial services firm in obtaining a groundbreaking interpretive guidance letter from the SEC staff stating that the client's proposed program would not violate the prohibition in Section 402 of the Sarbanes-Oxley Act against personal loans by an issuer to its directors and executive officers.
Litigation and Arbitration
  • A member of the BakerHostetler team serving as court-appointed counsel to the SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), handling certain avoidance actions seeking to recover customer property for equitable distribution to BLMIS customers with allowed claims.
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Experience

Regulatory Investigations
  • Represented numerous broker-dealer and individual clients in investigations by FINRA and other SROs, including matters in which the client was the primary focus of the investigation, which resulted in no disciplinary action taken against the client.
  • Represented a New York Stock Exchange (NYSE)-listed company that was the subject of an SEC investigation involving potential liability under Rule 10b-5, Regulation FD (Fair Disclosure) and other provisions relating to possible insider trading, market manipulation, deficient controls and procedures for financial reporting, and other issues. Representation resulted in no action instituted against the client.
  • Played a major role in BakerHostetler's service as third-party examiner arising from FINRA settlements in four separate engagements on behalf of major national and regional broker-dealers. As third-party examiner, BakerHostetler oversaw, advised on and reported on the broker-dealers' compliance with undertakings including restitution for customers.
  • Subject matters of representations have included equities, commodities, municipal securities and insurance products; FINRA, SEC and Chicago Mercantile Exchange rules regarding supervision, registration, disclosure, event reporting, trade reporting, trading ahead, "spoofing," interpositioning, short sales (including Regulation SHO), private securities transactions, outside business activities, continuing education, research and gifts; New York State Insurance Regulation 60; and alleged falsification of records and failure to cooperate with regulators or to testify truthfully.
Other Representations of Broker-Dealers and Financial Services Firms
  • Represented a financial services firm in obtaining a groundbreaking interpretive guidance letter from the SEC staff stating that the client's proposed program would not violate the prohibition in Section 402 of the Sarbanes-Oxley Act against personal loans by an issuer to its directors and executive officers.
  • Represented an association of NYSE floor brokers in the SEC comment process and in litigation regarding the NYSE's trading platform.
  • Played a major role in BakerHostetler's internal investigation, advice and report to a broker-dealer client involving alleged employee misconduct, Form U5 and other issues related to the termination of an employee trader.
  • Advised a broker-dealer client regarding regulatory issues arising from the acquisition of the client by another broker-dealer.
Litigation and Arbitration
  • A member of the BakerHostetler team serving as court-appointed counsel to the SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), handling certain avoidance actions seeking to recover customer property for equitable distribution to BLMIS customers with allowed claims.
  • Represented a major international financial services firm in commercial litigation in federal and state courts involving issues including alleged tortious interference and trade secret misappropriation arising from the client's alleged "raid" of employees.
  • Represented a client in commercial litigation in state court involving issues including alleged breach of a shareholders agreement and breach of fiduciary duties arising from the client's attempted exercise of a contractual provision for sale of shares.
  • Represented clients in FINRA arbitration involving issues including suitability and breach of fiduciary duty.

Recognitions and Memberships

Memberships

  • American Bar Association
    • Business Law Section, Committee on Federal Regulation of Securities, Subcommittee on Civil Litigation and SEC Enforcement Matters
    • Committee on Securities Litigation
  • Managed Funds Association
  • Securities Industry and Financial Markets Association (SIFMA) Compliance & Legal Division

News

News

Prior Positions

  • Philadelphia Stock Exchange: Head of Enforcement
  • NASD Department of Enforcement, New York Office (District 10): Regional Counsel

Admissions

  • U.S. District Court, Southern District of New York
  • U.S. District Court, Eastern District of New York
  • New York, 1987

Education

  • J.D., University of Michigan Law School, 1986
  • B.A., University of Pennsylvania, 1983, cum laude