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 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 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 has also 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 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 is representing a Moscow-based hedge fund manager and investment funds in an SEC enforcement action alleging Ukranian 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 is representing and advising a Court Appointed Receiver in a NYS Department of Financial Services federal action against an automobile sub-prime lender accused of consumer fraud. He successfully defeated a preliminary injunction application by the lender to enjoin the Receiver's sale of the loan portfolio and, on appeal to the Second Circuit Court of Appeals, defeated the lender’s motion to stay pending appeal.
  • Marc is advising 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 SEC. Both exams concluded with no negative effects upon either business. 
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Experience

  • Marc is representing a Moscow-based hedge fund manager and investment funds in an SEC enforcement action alleging Ukranian 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 is representing and advising a Court Appointed Receiver in a NYS Department of Financial Services federal action against an automobile sub-prime lender accused of consumer fraud. He successfully defeated a preliminary injunction application by the lender to enjoin the Receiver's sale of the loan portfolio and, on appeal to the Second Circuit Court of Appeals, defeated the lender’s motion to stay pending appeal.
  • Marc is advising 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 SEC. Both exams concluded with no negative effects upon either business. 
  • 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 successfully represented an officer of a Texas energy company in an SEC investigation by its Fort Worth office of purported insider trading; case was closed without any action. 
  • 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 represented 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 successfully close the matter without action.
  • Marc represented an international investment bank located in Greenwich, CT, in a securities class action and related civil and criminal international investigations by the SEC, U.S. Attorney, and foreign regulators. The matters arose from the failure and liquidation of an $850 million U.K.-based hedge fund with purported inflated portfolio valuations for illiquid securities. 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 by the fund's liquidators was successfully resolved. Marc and his team guided the client through the parallel proceedings, eventually resolving all matters with no governmental actions against the client and a nominal 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 to the Second Circuit Court of Appeals of an international arbitration lost by the client’s former counsel, which appeal 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 all 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 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.

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