| Biography:
Ronald E. Wood is Senior Counsel in Proskauer Rose LLP’s Litigation and Dispute Resolution Department and a member of the Firm’s Securities Litigation and Enforcement practice group.
Prior to joining Proskauer, Ron spent a decade with the SEC’s Division of Enforcement, conducting and directing investigations and follow-up proceedings in matters involving insider trading, market manipulation, fraudulent stock offerings, false financial reporting and disclosure violations followed by six years at Morgan Stanley, where he was an Executive Director in the Law Division, managing Morgan’s Southern California legal staff in litigation and regulatory matters during the turbulent years following the bursting of the technology and telecom stock market bubble.
While serving as Assistant Director of the SEC’s Los Angeles Regional Office Ron was awarded the SEC’s Supervisory Excellence Award and was honored, while serving as an Enforcement Branch Chief in the Chicago Regional Office to be nominated for the Stanley Sporkin Award for outstanding contribution to the Enforcement program.
He received his BA from Howard University and his JD from Howard Law School, where he served on the Howard Law Journal and National Moot Court Board.
Representative matters include:
Fraud in the Offer, Purchase and Sale
• In re Maricopa County. Cease-and-desist proceedings against sixth largest county in U.S. for failure to disclose its insolvency and misrepresenting its intended use of proceeds in Official Statements for two bond offerings.
• SEC v. John D. Lauer, et al. TRO against Risk Management Director of Chicago Housing Authority’s Pension Fund for fraud in connection with $14 million Prime Bank instrument scheme.
• SEC v. David A. Colvin, et al. TRO against boiler room that defrauded investors out of more than $5 million by falsely representing, among other things, that former Surgeon General C. Everett Koop and NBC anchorman Tom Brokaw were affiliated with a company that purportedly operated obesity clinics.
• SEC v. Mustang Development, et al. Ponzi scheme involving fraudulent sale of more than $139 million worth of oil and gas limited partnership interests to elderly investors; among other things, geologist falsified value and production of purported partnership wells, some of which were never owned.
Market Manipulation
• SEC v. Waldron & Co., Inc. et al. Manipulation of Shopping.com stock by broker-dealer and its former president who obtained more than $4 million using a variety of fraudulent devices, including parking stock, use of fictitious accounts, unauthorized trades and issuing a false press release.
• SEC v. Rafi M. Kahn, et al. Defendants created artificial demand by touting two stocks and engaging in fraudulent practices to restrict supply and raise prices as part of a scheme to squeeze short sellers.
• SEC v. Competitive Technologies, Inc., et al. 304-1331 D. Conn. Manipulation by marking the close over a two-and-a-half year period.
• SEC v. Lambert Vander Tuig. Manipulated stock price of Fastlane Footwear, a small Michigan company, by use of nominee accounts and wash sales.
Insider Trading
• SEC v. Gilbert Schwartzberg, et al. Insider trading and false financial reporting by former CFO and Controller of L.A. Gear footwear company; O&D bar against CFO.
• SEC v. John and Suzanne Vuko. Insider trading by spouse of CFO of Convergent Technologies.
Financial Reporting
•SEC v. Paul Safronchik, et al. Three officers of bankrupt Home Theater Products Inc. falsified books and records and caused company to report false financial results.
Investment Advisers
• SEC v. Alan Brian Bond, et al. Kickback scheme involving adviser to NBA, City Univ. of NY and Washington Metropolitan Transit Authority and a broker/friend who together skimmed more than $6.9 million through excessive, undisclosed mark-ups; funds were used to purchase 75 cars and shopping sprees topping $200k per month.
• SEC v. Benjamin Bush, et al. TRO against registered investment adviser for misappropriating and commingling funds after inducing investors with false brokerage statements and overvalued Brazilian bonds dating from 1906.
• SEC v. J. Baker Tuttle. Fraud and misappropriation by registered investment adviser and his employee/son.
• In re Byron Borgardt, et al. Independent directors of mutual fund failed to cause fund to disclose material facts of which they were aware.
Broker-Dealers
• SEC v. W.S. Clearing Inc., et al. TRO shutting down and enjoining continued net capital and customer protection violations by self-clearing broker-dealer that processed trades for 18 introducing firms.
• In re: Peacock Hislop, et al. Broker-dealer and one of its principals caused municipality to fail to disclose its poor financial condition in connection with two bond offerings.
Broker-Dealer Defense
Ron has defended many broker-dealer arbitrations, including claims:
•Seeking $2,081,299 in compensatory and unspecified punitive damages for alleged fraud, breach of fiduciary duty, unauthorized trading, churning, violation of Cal. Corporations Code and Puerto Rico Blue Sky law. Directed verdict granted at the close of Claimant’s case; all relief denied.
• Seeking $1.9 million in compensatory and $2.4 million in punitive damages for alleged breach of fiduciary duty, fraud, overconcentration, failure to supervise and elder abuse. All relief denied.
• Seeking $1.8 million in compensatory and $1.8 million in punitive damages for alleged securities fraud, unsuitable recommendations, failure to supervise and violation of Illinois Consumer Fraud and Deceptive Business Practices Act. Awarded $110,000 in compensatories, or just 6% of amount claimed. Punitives denied.
Other Regulatory Matters Defended
• IPO/Pay-to-Play. SEC investigation concerning allocation of hot IPO shares to former high profile Mayor at a time when IPO underwriter was bidding on two City bond offerings.
• Mutual Fund Class B Shares. NASD investigation of $50 million worth of ($100K+) mutual fund purchases re: breakpoint benefits and broker sales practices.
• Hedge Fund Ponzi Scheme. SEC and NASD parallel investigations following self-reporting of two purported hedge fund managers who claimed $50 million in trading losses due to purported order entry and margin calculation errors while running a fraudulent scheme, which included a Ponzi component.
• Market Manipulation. SEC investigation of broker suspected of conspiring with several other brokers around the country to manipulate the stock of Competitive Technologies, in which the broker and a number of his clients held a substantial position.
Intellectual Property
• Church & Dwight v. Abbott Laboratories, Inc.. Co-lead trial counsel in successful patent infringement case (Feb. 2008) relating to over-the-counter pregnancy test kits . Jury verdict = $15 million.
Trade Secrets
• Recent (Feb. 2008) victory in AAA arbitration involving conversion and breach of fiduciary duty by former member of LLC/investment bank in downloading and transferring virtually the entire contents of former employer/bank’s server, containing proprietary and trade secret data. Injunctive relief and money damages awarded. Later confirmed in LA Superior Court.
• Syndicate. Internal review of IPO allocation process in prominent Los Angeles area branch office.
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