Reciprocal Interim Suspension

An interim suspension ordered in New Jersey was imposed reciprocally by the New York Appellate Division for the First Judicial Department

In October 2017, the New Jersey Office of Attorney Ethics (OAE) opened an investigation of respondent based on his alleged securities related misconduct. The investigation concerned charges the United States Securities and Exchange Commission (SEC) included in an amended complaint filed on June 26, 2014, in the United States District Court for the Southern District of New York against respondent. In its action, the SEC alleged that respondent was involved in an international “pump and dump” scheme involving the publicly traded securities of two companies. On March 28, 2017, a default judgment was entered against respondent in the SEC action whereby the court opined that respondent “made a conscious decision to cease defending against [the] action” and on May 3, 2017, the court found him jointly and severally liable for the disgorgement of $8.2 million in illicit gain. The court imposed a $375,000 civil penalty and directed that the monies be paid within 14 days.

On October 5, 2017, the OAE sent a letter to respondent via certified mail to advise him of its investigation into the matter referred to it by the SEC. On December 18, 2017, respondent, through counsel, responded to the OAE’s letter, denying any misconduct on his part.

On August 4, 2021, the United States Department of Justice filed a criminal complaint against respondent in United States District Court, District of Massachusetts and issued a warrant for his arrest. The federal criminal charges concern a securities fraud scheme relating to securities not involved in the SEC action noted above. The OAE opened a separate investigation of respondent based on these federal criminal charges. However, the matter was deemed “untriable” pending the outcome of the criminal proceeding.

After there was no response in New Jersey

On June 6, 2022, the OAE filed a Petition for Emergent Relief requesting respondent’s immediate temporary suspension pursuant to New Jersey Court Rules 1:20-3(g)(4) and 1:20-11 for his failure to cooperate with the OAE’s investigation, failure to comply with the court order issued in the SEC civil matter and due to his pending criminal charges.

By order entered July 13, 2022, the Supreme Court of New Jersey granted the OAE’s petition and temporarily suspended respondent, effective immediately, and until further order of the court.

Here, reciprocal discipline of suspension until further order was imposed. (Mike Frisch)