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Enforcement 2013: Perspectives from Government Agencies

 
Author(s): Joan E. McKown, Richard D. Owens, Linda Chatman Thomsen
Practice Area: Corporate & Securities
Published: Apr 2013
PLI Item #: 41895
CHB Spine #: B2022

Ms. Thomsen, who was the first woman to serve as the Director of the Division of Enforcement at the Securities and Exchange Commission, is a partner in Davis Polk’s Litigation Department and practices in the Washington DC office. Her practice concentrates in matters related to the enforcement of the federal securities laws.

She has represented clients in SEC enforcement investigations and inquiries, in enforcement matters before other agencies, including the Department of Justice (various U.S. Attorneys Offices) and the Commodities Futures Trading Commission, in investigations and inquiries from self-regulatory agencies, including FINRA, and in internal investigations.

These matters, which are typically nonpublic, have covered a broad range of securities-related subject matters, including insider trading, foreign corrupt practices, financial reporting, manipulation and regulatory compliance. Her clients have included major financial institutions, regulated entities, public companies and senior executives.

Ms. Thomsen returned to Davis Polk in 2009 after 14 years of public service at the SEC. While there she held a variety of positions and ultimately served as the Director of Enforcement from 2005 through February 2009. During her tenure as the Director of Enforcement, she led the Enron investigation, the auction rate securities settlements, the stock options backdating cases and the expansion of the enforcement of the Foreign Corrupt Practices Act.

WORK HIGHLIGHTS

Ms. Thomsen has been at the forefront of high-profile matters relating to:

  • High-frequency trading
  • Mortgage-backed securities
  • The "princelings" investigations
  • Analyst surveys and alpha-capture programs
  • Trading-surveillance policies and procedures
  • Market disruptions
  • FCPA violations
  • The sovereign wealth fund business

Her recent public representations include:

  • Liquidnet, a dark pool, in connection with an SEC investigation into the use of confidential customer data, in a matter resolved with a non-fraud settlement
  • MF Global's independent directors in connection with all litigation and investigations surrounding MF Global's well-publicized failure and bankruptcy
  • A major financial institution in connection with inquiries by the SEC related to a $3.7 billion capital-reporting error
  • The board of directors of Direct Edge in connection with an SEC multidisciplinary inquiry relating to potential violations concerning technology, information security, securities compliance and governance
  • McGraw Hill Financial, Inc. and Standard & Poor's Financial Services LLC in connection with lawsuits brought by the SEC, DOJ and Attorneys General of numerous states concerning the ratings of residential mortgage-backed securities
  • Two stock exchanges, EDGA and EDGX, formerly owned by Direct Edge Holdings and since acquired by BATS Global Markets in connection with an investigation by the SEC related to high-frequency trading

Many of Ms. Thomsen's most successful matters have not resulted in public charges and therefore remain confidential.

RECOGNITION

Ms. Thomsen is consistently recognized for her work by several leading industry publications, including:

  • Chambers USA
  • Benchmark Litigation
  • The Legal 500 U.S.
  • Best Lawyers in America
  • Securities Docket's – “Enforcement 40,” 2013
  • The Burton Awards for Legal Achievement – “Distinguished Legal Writing Award,” 2012
  • Washington Business Journal’s – “Women Who Mean Business,” 2010
  • Ethisphere’s – “100 Most Influential People in Business Ethics,” 2009
  • Wall Street Journal’s – “The 50 Women to Watch,” 2005, 2006

PROFESSIONAL HISTORY 

  • Partner, Davis Polk, 2009-present
  • Securities and Exchange Commission: served for 14 years in the Enforcement Division as Director (2005-2009), Deputy Director (2002-2005), Associate Director (2000-2002), Assistant Director (1997-2000), Assistant Chief Litigation Counsel (1995-1997)
  • Counsel, Davis Polk, 1989-1995
  • Associate, Davis Polk, 1979-1983; 1985-1989

BAR ADMISSIONS

  • District of Columbia
  • State of New York
  • U.S. District Court, District of Columbia

EDUCATION

  • A.B., Smith College, 1976
    • with high honors
  • J.D., Harvard Law School, 1979


Education

JD, Harvard University, 1988
cum laude

BA, University of North Carolina at Chapel Hill, 1984
with Highest Honors

Bar Qualifications

Mr. Owens is qualified to practice before the New York state bar.

Areas of Expertise

Richard Owens is the Chairman of the Litigation Department in the New York office of Latham & Watkins. His practice focuses primarily on representing corporations and individuals in a wide variety of criminal and regulatory investigations and proceedings, as well as conducting internal investigations and advising on compliance matters. Prior to joining the firm, Mr. Owens served for more than twelve years as an Assistant United States Attorney in the United States Attorney’s Office for the Southern District of New York.

From 2002 through 2006, Mr. Owens served as the Chief of the Securities and Commodities Fraud Task Force. During his tenure as Chief, Mr. Owens supervised a team of approximately twenty prosecutors devoted to investigating and prosecuting securities fraud, commodities fraud, money laundering and obstruction of justice. Mr. Owens was responsible for coordinating the Office’s criminal prosecutions with parallel civil matters brought by the Securities & Exchange Commission (SEC), the Commodity Futures Trading Commission, the Federal Reserve Banks, the New York Stock Exchange, the NASD, and state regulators. Mr. Owens directly supervised some of the nation's highest profile prosecutions of corporate fraud and insider trading, including those related to WorldCom, Adelphia Communications, American BankNote, ImClone Systems, Impath, Inc., and Royal Ahold, N.V. Mr. Owens received the Attorney General’s annual Distinguished Service Award in 1996 for the successful prosecution of the Daiwa Bank and again in 2000 for the successful prosecution of Patrick R. Bennett in connection with the then-largest financial fraud in

U.S. history. Mr. Owens has tried twelve felony cases, including two of the three largest criminal accounting fraud cases ever prosecuted in the Southern District of New York.

Mr. Owens’ recent matters have included:

  • Representing a global investment bank in connection with a variety of regulatory inquiries and civil actions relating to mortgage-backed securities.
  • Representing a senior executive of AIG Financial Products in connection with SEC and DOJ investigations of AIG’s collapse that were closed without charges.
  • Representing executives from a number of financial institutions in connection with SEC and DOJ investigations of the valuation of complex structured products and derivatives, including mortgage-backed securities, CDOs, and credit default swaps.
  • Representing institutional and individual clients before the Financial Crisis Inquiry Commission.
  • Conducting an internal investigation for the audit committee of an NYSE-listed company.
  • Advising a Fortune 100 company on FCPA matters.
  • Defending the former Chairman of the American Stock Exchange in connection with enforcement proceedings brought by the Securities Exchange Commission.
  • Advising major investment banks and investment advisors with respect to insider trading compliance issues.
  • Developing 10b5-1 trading plans for individuals and institutions that comply with both U.S. law and similar foreign laws.

Speaking Engagements

Mr. Owens is a frequent speaker on securities law, corporate governance and criminal law matters and has spoken at programs sponsored by a wide variety of groups, including, the U.S. Department of Justice’s National Advocacy Center, the U.S. Securities and Exchange Commission, the Association of the Bar of the City of New York, the New York State Bar Association, the Practicing Law Institute, ALI-ABA, and the Institute of Government of the University of North Carolina.