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Ivan B. Knauer

Ivan B. Knauer is co-chair of the Securities and Financial Services Enforcement Group and a partner in the White Collar Litigation and Investigations Practice Group of Pepper Hamilton LLP, resident in the Washington office. Mr. Knauer focuses his practice on securities litigation and enforcement.

Mr. Knauer rejoined Pepper in early 2008 from the Financial Industry Regulatory Authority (FINRA), where he held a senior staff position as Vice President and Managing Trial Counsel in the Department of Enforcement. He had been a partner with Pepper from 2003 until 2005, and he also has practiced with other major law firms. Earlier in his career, he served as senior counsel in the Securities and Exchange Commission’s Enforcement Division, where he led investigations into insider trading, sales practices involving mutual funds and other securities law violations. He also has served as a special assistant district attorney in Massachusetts.

Mr. Knauer represents public companies, broker-dealers, investment companies, investment advisers and individuals in class actions and arbitrations, and in enforcement matters brought by the SEC, FINRA and other regulatory bodies. He also counsels financial institutions on regulatory compliance matters.

The following engagements are representative of Mr. Knauer’s practice. He has:

  • acted as special investigative counsel to The Hon. Louis J. Freeh, trustee in bankruptcy of MF Global Holdings
  • represented the head trader of a broker-dealer in a FINRA investigation regarding Reg SHO; successfully convinced the staff not to recommend an enforcement action
  • represented several branch managers in FINRA investigations regarding possible failure to supervise; successfully convinced the staff not to recommend an enforcement action
  • represented the broker-dealer affiliate of a large insurance company in a FINRA arbitration regarding the sale of a variable life insurance policy
  • represented the chairman of a public company in connection with an SEC investigation regarding possible insider trading in company stock
  • represented the president of a public company in connection with an SEC investigation regarding possible insider trading in company stock
  • represented a hedge fund and its president in litigation against the SEC in a case alleging late trading and market timing of mutual funds, culminating in a seventeen day trial in federal court in New York
  • represented a broker at trial against FINRA in a matter involving trading in accounts held away from his firm; obtained a more favorable result than offered by the staff before trial
  • wrote amici curiae brief for the Securities Industry and Financial Markets Association and Futures Industry Association in appeal to the Second Circuit in Gredd v. Bear Stearns
  • represented large investors seeking to recover money invested in alleged Ponzi schemes
  • served as an expert witness in a federal court action involving Sarbanes-Oxley (U.S. Dist. Ct., MD)
  • conducted an internal investigation on behalf of the audit committee of a public company regarding allegations made by a whistleblower that the company president made false and misleading statements at an analysts’ conference
  • conducted an internal investigation of a broker-dealer regarding possible insider trading based on confidential information about the departure of a profitable trading desk
  • conducted an internal investigation on behalf of the audit committee of a bank regarding alleged insider trading by one or more board members
  • conducted an internal investigation regarding possible insider trading at a broker-dealer due to a potential breach of “Chinese Wall” procedures
  • won an SEC administrative trial on behalf of a former president of a broker-dealer involving whether the president violated the terms of a prior suspension order imposed by the SEC
  • represented several brokers and their branch manager in connection with an NASD investigation regarding possible unsuitable sales of CMOs; the staff declined to pursue the matter after testimony and meetings with the staff
  • represented an investment adviser and its officers in connection with an SEC investigation regarding whether the adviser complied with its fiduciary duty when allocating shares of “hot” initial public offerings to its clients
  • represented an options dealer in connection with an SEC investigation regarding interpositioning of trades on regional exchanges
  • represented a branch manager of a broker-dealer in connection with an SEC investigation regarding market timing and late trading; the staff declined to pursue the matter after receiving a Wells Submission
  • represented a mutual fund complex and a portfolio manager in connection with an SEC investigation regarding market timing and late trading
  • represented a mutual fund complex in connection with an SEC investigation regarding revenue sharing; the staff declined to pursue the matter after testimony and meetings with the staff
  • won dismissal of a securities class action complaint against the independent directors of a government-sponsored mortgage enterprise (U.S. Dist. Ct., D.C.)
  • won dismissal of a securities class action complaint against a public company and its inside directors alleging improper use of the percentage of completion method of accounting to recognize revenue (U.S. Dist. Ct., S.D.N.Y.)
  • defeated class certification on standing grounds against investors in two out of four mutual funds in a securities class action alleging improper valuation of senior secured floating-rate loans in a mutual fund portfolio; the case later settled on favorable terms (U.S. Dist. Ct., D. Mass.)
  • won dismissal of a securities class action complaint against a high-yield bond fund alleging failure to disclose risks in the fund’s prospectus; won partial summary judgment on the amended complaint and settled the case on favorable terms (U.S. Dist. Ct., D. Mass.)
  • won a AAA arbitration on behalf of a broker-dealer and sponsor of a wrap fee mutual fund program against a sub-adviser regarding each party’s fiduciary duty vis à vis the client with respect to participation in a tender offer for a foreign security.
Mr. Knauer is a frequent speaker and author on securities enforcement, litigation and compliance issues. His recent publications include:
  • “Still No Free Lunch: Recent Regulatory Initiatives to Protect Seniors from Fraud in the Sale of Investment Products” (co-author), Securities Regulation Law Journal (Winter 2013)
  • “SEC Hits the ‘Reset Button’ on Failure to Supervise Liability for Legal and Compliance Personnel” (co-author), Client Alert, Pepper Hamilton LLP (October 18, 2013)
  • “SEC Settles with the City of Harrisburg: Case Presents a Teaching Moment for Other Municipalities” (co-author), Client Alert, Pepper Hamilton LLP (May 30, 2013)
  • “Caution Advised for Newly Registered Advisers” (co-author), Client Alert, Pepper Hamilton LLP (October 18, 2012)
  • “Déjà Vu All Over Again: FINRA to Focus on Conflicts of Interest Regarding the Sale of Complex Financial Products in the Wake of the Financial Crisis” (co-author), Client Alert, Pepper Hamilton LLP (October 16, 2012)
  • “SEC to Increase Enforcement Activity Significantly in 2012” (co-author), Client Alert, Pepper Hamilton LLP (January 11, 2012)
  • “SEC Settles with Adviser for Over $3.3 Million in Connection with Improper Sub-Advisory Fee Arrangement” (co-author), Financial Services Alert, Pepper Hamilton LLP (November 23, 2011)
  • “The Quest to Create a Self-Regulatory Organization for Investment Advisers: ‘I Say Adviser; You Say Advisor ... Let’s Call the Whole Thing Off’” (co-author), Client Alert, Pepper Hamilton LLP (October 18, 2011)
  • “Supreme Court Rules Investment Adviser Not Liable under Rule 10b-5 for Statements Included in Mutual Fund’s Prospectus” (co-author), Client Alert, Pepper Hamilton LLP (June 15, 2011)
  • “Amendments to the Discovery Rules Governing FINRA Customer Dispute Cases” (co-author), Client Alert, Pepper Hamilton LLP (May 17, 2011)
  • “Whistleblower Provisions of the Dodd-Frank Act Clarified by the SEC’s Proposed Rules,” Client Alert, Pepper Hamilton LLP (November 12, 2010)
  • “OCIE Director Discusses Recent Changes at the Commission and Current Exam Priorities” (co-author), Client Alert, Pepper Hamilton LLP (November 1, 2010)
  • "FINRA Contemplates Requiring a Broker Version of Form ADV Disclosure” (co-author),Client Alert, Pepper Hamilton (October 29, 2010)
  • “The Law is the Law (Unless and Until it Changes): Broker Does Not Owe Fiduciary Duty to Purchaser of Variable Life Insurance” (co-author), Financial Services Alert, Pepper Hamilton LLP (September 21, 2009)
  • “There’s No Such Thing as a Free Lunch: Recent Regulatory Initiatives Regarding Sales to Seniors” (co-author), Securities Regulation Law Journal (Winter 2008)
  • “SIFMA and FIA File Brief as Amici Curiae in Appeal to Second Circuit of Decision Holding that Broker-Dealer Had ‘Dominion and Control’ over Hedge Fund Account” (co-author), Client Alert, Pepper Hamilton LLP (November 19, 2008)
  • “Now Is the Time for Compliance: SEC Official Provides List of Exam Focus Areas” (co-author), Financial Services Alert, Pepper Hamilton LLP (October 21, 2008)
  • “SEC Fines Broker-Dealer $275,000 for Failing to Safeguard Customer Information” (co-author), Securities Enforcement Alert, Pepper Hamilton LLP (September 23, 2008)
  • “Proposed SEC Rule Would Streamline Insider Trading Surveillance, Investigation and Enforcement, ” Securities Enforcement Alert, Pepper Hamilton LLP (September 12, 2008).

His recent speaking engagements include:

  • “Regulatory Examinations (Large Firms),” The National Society of Compliance Professionals Annual Meeting, October 21-23, 2012, Washington, DC
  • “Regulatory Examinations: Broker-Dealers,” The National Society of Compliance Professionals Annual Meeting, October 22-24, 2012, Washington, DC
  • “Regulatory Examinations: Investment Advisors,” The National Society of Compliance Professionals Annual Meeting, October 17-19, 2011, Baltimore, MD
  • “Social Media and Electronic Communications” The National Society of Compliance Professionals Annual Meeting, November 1-3, 2010, Baltimore, MD
  • “Who is a Senior, and What Are the Regulatory Issues?,” The National Society of Compliance Professionals Annual Meeting, October 5-7, 2009, Philadelphia, PA.


Education
B.A. 1983 University of Pennsylvania
J.D. 1989 New York University School of Law


Bar Admissions
Admitted to practice in the District of Columbia, Massachusetts and New York

Ivan B. Knauer
Partner
Phone: 202.220.1219
Fax: 202.220.1665
knaueri@pepperlaw.com
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Office(s)
Washington, D.C.

Practice Area(s)
Class Action Litigation
Commercial Litigation

Corporate Governance
Corporate Risk Management, Stockholder Litigation, and Special Committee Representation

Financial Services Enforcement Response Team
International

International and Domestic Arbitration
Investment Funds Industry Group

Investment Management
Securities and Financial Services Enforcement Group

Securities Litigation
U.S.-India

White Collar Litigation and Investigations


Articles


Private Equity and the SEC: A Brave New World of Scrutiny and Compliance

Securities and Exchange Commission Creates New Private Fund Unit Dedicated to Examination of Private Equity and Hedge Funds


FINRA’s 2014 Regulatory and Examination Priorities Address Existing and Emerging Investor Protection and Market Integrity Issues

Public Officials, Financial Disclosure and a New Era of Liability


SEC Hits the ‘Reset Button’ on Failure to Supervise Liability for Legal and Compliance Personnel

SEC Settles with the City of Harrisburg: Case Presents a Teaching Moment for Other Municipalities


Still No Free Lunch: Recent Regulatory Initiatives to Protect Seniors from Fraud in the Sale of Investment Products

Caution Advised for Newly Registered Advisers


Déjà Vu All Over Again: FINRA to Focus on Conflicts of Interest Regarding the Sale of Complex Financial Products in the Wake of the Financial Crisis

SEC to Increase Enforcement Activity Significantly in 2012


SEC Settles with Adviser for Over $3.3 Million in Connection with Improper Sub-Advisory Fee Arrangement

The Quest to Create a Self-Regulatory Organization for Investment Advisers: ‘I Say Adviser; You Say Advisor ... Let’s Call the Whole Thing Off’


Supreme Court Rules Investment Adviser Not Liable under Rule 10b-5 for Statements Included in Mutual Fund’s Prospectus

Amendments to the Discovery Rules Governing FINRA Customer Dispute Cases


Whistleblower Provisions of the Dodd-Frank Act Clarified by the SEC’s Proposed Rules

OCIE Director Discusses Recent Changes at the Commission and Current Exam Priorities


FINRA Contemplates Requiring a Broker Version of Form ADV Disclosure

Beware the ‘Ponzi Scheme Presumption’ – New SEC Unit to Investigate Asset Managers


A New Year, A New SEC?

New Bill Would Require Advisers to Many Canadian Hedge And Private Equity Funds to Register as U.S. Investment Advisers


The SEC’s ‘New Reality’ – Acting Head of OCIE Recognizes Lessons to Be Learned

The Law Is the Law (Unless and Until It Changes): Broker Does Not Owe Fiduciary Duty to Purchaser of Variable Life Insurance


SIFMA and FIA File Brief as Amici Curiae in Appeal to Second Circuit of Decision Holding that Broker-Dealer Had 'Dominion and Control' over Hedge Fund Account

Now Is the Time for Compliance: SEC Official Provides List of Exam Focus Areas


SEC Fines Broker-Dealer $275,000 for Failing to Safeguard Customer Information

Proposed SEC Rule Would Streamline Insider Trading Surveillance, Investigation and Enforcement


Insider-Trading Conundrum: Can a Company Sell Data Without Violating Federal Securities Laws?

The Mutual Fund Crisis - Beginning to See a Resolution


Articles


Crisis on Wall Street: Litigation, Enforcement and White Collar Implications

The Madoff Scandal: Implications and Next Steps


Private Fund Investment Advisers Registration Act of 2009 Set to Impact Many Canadian Hedge and Private Equity Funds

Underwriters, Universities and Government Debt Issuers Face a Critical Deadline


Preparing for the New Wave of Government Enforcement Activity in Financial Services


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