Howard Schiffman

Howard Schiffman is a partner in Schulte Roth & Zabel’s Washington, D.C. office and co-chair of the Litigation Group. Nationally known in the area of securities litigation and regulatory developments, Howard’s practice focuses on investigations and enforcement proceedings brought by various exchanges and government agencies, including the SEC, the DOJ and FINRA, to a diverse array of civil litigation, including securities class actions and arbitrations. A corporate problem solver, Howard is as adept at dispute containment and resolution as he is at arguing to a jury. He counsels clients, including major financial institutions and investment banks, leading Nasdaq market-makers, institutional and retail brokerage firms and their registered representatives, trade execution and clearing firms, prime brokers, national accounting firms, hedge funds, and public and private companies and their senior officers in risk analysis and litigation avoidance. Still, with his extensive trial experience and solid record of success in numerous SEC enforcement actions, SRO proceedings and FINRA arbitrations, Howard has the confidence to take a case to trial when necessary. Recently, he obtained victories in three significant matters, including prevailing in a price adjustment case involving the dispute of several $100 million for a portfolio of real estate mortgages. He represented the former CEO of the largest Nasdaq market-making firm, Knight Securities, in a federal court action brought by the SEC. After a 14-day bench trial, all parties were completely cleared of wrongdoing.

Howard began his career as a trial attorney with the SEC Division of Enforcement. In private practice for almost 30 years, he has long been at the forefront of securities litigation and regulatory developments, including his current representation of hedge funds, and the leading prime brokers and clearance firms, in regulatory and civil litigation. Howard was included in the Washingtonian’s “800 Top Lawyers” listing (a ranking of “Washington’s best—the top one percent”) and has been recognized by Chambers USA: America’s Leading Lawyers for Business as a leading individual in the securities regulation area. He is a member of American Bar Association Sections on Litigation, Corporation, Finance and Securities Law, and was a director and former president of the Association of Securities and Exchange Commission Alumni Inc. He received his J.D., cum laude, from Fordham University School of Law and his B.A., cum laude, from Colgate University.

Selected Representations

Overview
Clients have included many of the leading financial institutions and investment banks, largest Nasdaq market-makers, institutional and retail brokerage firms and their registered representatives, trade execution and clearing firms, prime brokers, national accounting firms, hedge funds, and numerous public and private companies and their senior officers.

Has advised and/or represented clients in connection with securities litigation and regulatory developments in wide variety of areas, including stock option grant backdating, mutual fund market timing and late trading, alleged market manipulation, legal exposure arising out of prime brokerage services, and securities registration and insider-trading issues arising out of private investment in public equity (PIPE) offerings.

Extensive trial experience includes impressive record of successfully litigating to conclusion numerous SEC enforcement actions, SRO proceedings and FINRA arbitrations.

In addition to representing clients in adversarial and quasi-adversarial proceedings, has provided counseling on compliance with federal, state and SRO securities regulatory provisions; develops customized securities compliance and record-keeping policies and procedures; and assists clients in formulating and implementing internal audit programs.

SEC and DOJ Enforcement Proceedings
Has successfully represented numerous clients in complex securities matters before the SEC and the DOJ. The investigations and enforcement proceedings have focused on, among other things, accounting and financial disclosure issues, stock option grant backdating issues, PIPE offerings, sales of unregistered securities, executive compensation and perks, sales practices, soft dollars, late trading and market timing, insider trading, alleged Foreign Corrupt Practices Act violations, alleged antitrust violations, money laundering compliance, and market manipulation.

Has represented the largest New York State Stock Exchange (NYSE) specialist and leading Nasdaq market-making firms, national retail brokerage firms and their management and representatives, and public companies and their officers and directors. For example, before the SEC and in private litigation, represented the Special Committee of the Board of Directors of a Fortune 100 technology company in connection with a worldwide investigation of allegations of stock option backdating and earnings manipulation. Also represented the CEO of one of the world’s largest food processing companies in an SEC proceeding involving proxy disclosure, and the CEO of a leading market-maker in connection with allegations of fraud and inadequate supervision.

Has been involved in many complex accounting cases. Served as trial counsel in the SEC’s first successful fully-litigated accounting case, which involved a shifting of quarterly earnings based on improper recognition of sales and an improper accounting of inventory (SEC v. Aydin Corp.). Involvement in complex accounting matters before the SEC and the DOJ has included representation of one of the largest energy companies in connection with allegations of improper revenue recognition of wash trades.

SRO Investigations and Proceedings
Has represented numerous securities professionals in regulatory investigations conducted by NASDR and the NYSE, American Stock Exchange (AMEX), Chicago Board Options Exchange (CBOE), Commodity Futures Trading Commission, and various other exchanges. Has represented many of the largest securities firms, including Goldman Sachs & Co., Knight Securities, Spear, Leeds & Kellogg, First Options of Chicago, National Discount Brokers, Cantor Fitzgerald, Wolverine and PaineWebber. Has represented market professionals in connection with allegations that range from failure to supervise, violation of option trading rules, and improper clearing to trading irregularities and reporting violations. Also has successfully assisted numerous issuers in connection with NASD (now FINRA) delisting proceedings.

NYSE and FINRA Investigations
Represents a major clearing firm in a joint NYSE and FINRA investigation dealing with the supervision of direct access order flow, appropriate surveillance for various types of potentially violative trading practices, including "spoofing," wash sales and marking the close, portfolio margin issues, and anti-money laundering compliance.

Appellate Experience
Has appeared before the federal circuit courts of appeal to argue cutting- edge issues related to securities and corporate litigation and has represented the Securities Industry and Financial Markets Association (fka Securities Industry Association) (collectively, SIFMA) in appearances as amicus curiae in cases of industry-wide significance.

Appellate success requires innovation, experience, and careful investment of resources. Has received many significant favorable appellate decisions, including matters on behalf of Duke Energy (2d Circuit), First Options of Chicago, Inc., Spear, Leeds & Kellogg, L.P. (11th Circuit), the State of Hawaii Insurance Commissioner (9th Circuit) and Herbalife (9th Circuit).

Securities Litigation and Arbitration
Has successfully represented a wide range of clients, including the largest broker-dealers (Goldman Sachs, Merrill Lynch, PaineWebber, Knight Securities), clearing firms (Spear, Leeds & Kellogg, Pershing), investment companies (Vanguard, Federated), investment banks (Royal Bank of Scotland, Lehman Brothers), fixed-income trading firms (Cantor Fitzgerald, Greenwich Capital), and Fortune 500 public companies (Duke Energy, Comverse Technology) in class action, derivative, and other types of cases in federal and state courts, and before FINRA, NYSE, CBOE and American Arbitration Association (AAA) arbitration forums, involving, among other things, claims of securities fraud, breach of fiduciary duty, trading improprieties, RICO violations, antitrust violations, inadequate compliance and supervision, fraud in connection with private and public offerings, market structure issues, and accounting irregularities.

Selected Publications

Selected Speaking Engagements

Memberships

American Bar Association
    Member, Litigation, Corporation, Finance and Securities Law Sections
Association of Securities and Exchange Commission Alumni, Inc. (ASECA)
    President, 1998-2000
    Director, 1995-present

Other Distinctions

• Listed as a “Local Litigation Star” for the Washington, DC metro area in Benchmark Litigation: The Definitive Guide to America's Leading Litigation Firms and Attorneys (2012).
• Named one of “Washington’s Top Lawyers” in the securities area by Washingtonian magazine (2004 and 2011).
• Included in The Best Lawyers in America in the areas of commercial litigation and securities law (2007-2011).
• Recognized in Washingtonian magazine's listing of the 800 Top Lawyers, described by the publication as “Washington’s best—the top one percent” (2007). 
• Named in Lawdragon’s “500 Leading Lawyers in America” guide (2007).
• Ranked in Chambers USA: America’s Leading Lawyers for Business as a leading individual in the area of securities regulation for the District of Columbia, and described as a “committed and effective advocate” who is “aggressive in a calm, thoughtful way” and executes “killer attacks in an easygoing style” (2007). Was also ranked nationally (2008-2011). 
• Named in Washington DC Super Lawyers (2007). 
• Was honored by Lawdragon magazine as a “Leading Lawyer,” in a list that represents less than one percent of the legal profession and is determined based on a combination of independent research and peer reviews (2006).

Bar Admissions

• District of Columbia
• New York

Court Admissions

• U.S. Court of Appeals, District of Columbia
• U.S. Court of Appeals, Second Circuit
• U.S. Court of Appeals, Ninth Circuit
• U.S. Court of Appeals, Eleventh Circuit
• U.S. District Court, Southern District of New York
• U.S. District Court, Eastern District of New York
• U.S. District Court, District of Columbia
• U.S. Supreme Court
• U.S. District Court, District of Colorado
• U.S. District Court, District of Connecticut (pro hoc vice)
• U.S. District Court, District of Maryland

Education

Prior Experience

Partner, Dickstein Shapiro LLP, 1980–2008 
    Head of Securities Litigation, Regulatory and Compliance Practice
Trial attorney, SEC Division of Enforcement
Adjunct, Washington College of Law, American University, 1987–92 
    Taught classes on white-collar crime