DAVID PETRON is a partner in the Securities Enforcement and Regulatory practice, which received the 2019 Chambers USA Award for Financial Services Regulation, and was named the “Law Firm of the Year” for Securities Regulation in 2020 and 2017 by U.S. News — Best Lawyers. His securities enforcement practice has covered the entire range of SEC enforcement matters, including investigations of securities fraud, insider trading, accounting fraud, disclosure irregularities, Foreign Corrupt Practices Act (FCPA) violations, investment adviser misconduct, broker-dealer matters, and credit rating agencies registered as Nationally Recognized Statistical Rating Organizations (NRSROs). He has defended a wide variety of clients in investigations before the U.S. Securities and Exchange Commission (SEC), the U.S. Department of Justice (DOJ), the Financial Industry Regulatory Authority (FINRA), the Commodity Futures Trading Commission (CFTC), the National Futures Association (NFA), and other regulators.
David has extensive experience with the SEC’s regulation of registered investment advisers and NRSROs. He routinely advises investment advisers and credit rating agencies on compliance matters involving conflicts of interest, expense allocations, valuation, registration issues, and other regulatory topics. He regularly defends SEC enforcement investigations of investment advisers and NRSROs. He has also advised clients on the application of the risk retention rules applicable to securitization transactions.
David has defended public companies and other clients in a variety of SEC investigations related to potential accounting fraud, financial reporting and disclosure violations, and other matters arising under the federal securities laws. David has handled investigations involving revenue recognition, valuation, goodwill, intangible assets, securitizations, alleged pyramid schemes and insider trading.
David also advises clients on all aspects of compliance with the FCPA, including the development and implementation of FCPA and anti-corruption compliance programs and procedures. David has led comprehensive reviews of companies’ FCPA compliance programs and advised clients on FCPA issues related to mergers and acquisitions. He has defended companies in FCPA investigations and conducted FCPA internal investigations.
Some highlights of David’s experience are the following:
- In the Matter of Morningstar Credit Ratings, LLC (2020) — represented an NRSRO in a first-of-its-kind investigation involving sales and marketing practices.
- Represented a broker-dealer in the SEC’s investigation of municipal bond “flipping.”
- Represented a registered investment adviser in an SEC investigation involving potential conflicts of interest and valuation issues; investigation closed without action.
- SEC v. Desarrolladora Homex S.A.B. de C.V. (2017) — represented a foreign issuer in a revenue recognition fraud investigation; investigation settled with no civil money penalty.
- Represented a broker-dealer in an SEC investigation of trading activity as an authorized participant in bond ETFs; investigation closed without action.
- In the Matter of Guggenheim Partners Investment Management, LLC (2015) — represented a registered investment adviser in an SEC investigation of alleged violations of the Investment Advisers Act of 1940.
- Represented several multinational life sciences companies in FCPA investigations before the SEC and the DOJ.
- SEC v. Morgan Stanley & Co. Incorporated (2006) — represented a broker-dealer in an SEC investigation of email retention and production issues.
- SEC v. Raytheon Company (2006) — represented a defense contractor in an SEC investigation of accounting and disclosure issues.
David is also a member of the firm’s Appellate team with a practice that includes regulatory matters involving the First Amendment. He has been heavily involved in free speech cases challenging the FCC’s regulation of broadcast indecency before the FCC and all levels of the federal courts, including a victory in the Supreme Court in FCC v. Fox Television Stations, Inc. David has also been involved in religious liberty litigation on a variety of church-state issues. He has briefed cases in the Supreme Court and a variety of federal circuit courts and personally argued cases before the D.C. Circuit and the D.C. Court of Appeals.
David also has substantial experience with complex electronic discovery matters, including predictive coding and technology-assisted reviews.
David joined the firm following clerkships with Judge Susan H. Black of the Eleventh Circuit Court of Appeals and Chief Judge D. Brooks Smith of the Western District of Pennsylvania. During the latter clerkship, he assisted Judge Smith with matters related to his nomination and ultimate confirmation to the Third Circuit.