EB5 Investors Magazine "Top 25 Awards Edition" Volume 8 Issue 1 - Page 55

WINNERS LISTED ALPHABETICALLY TOP LITIGATION AT TORNEYS SCOTT M. ANDERSEN S cott Andersen is principal at Andersen, P.C., a securities regulatory defense law firm. Andersen was formerly deputy regional chief counsel at FINRA, where he oversaw FINRA enforcement cases prosecuted in the Western United States. He has broad experience with regulatory investigations and enforcement actions as a former 19-year plus securities regulator. He has led complex criminal and civil prosecutions for the N.Y. State Attorney General's office’s Investor Protection Bureau, the NYSE and FINRA. He has represented EB-5 participants including a regional center, EB-5 issuer and a market intermediary in investigations conducted by the SEC and FINRA. WHAT NEW TRENDS ARE YOU SEEING WHEN IT COMES TO EB-5 LITIGATION? While 2020, with COVID, led to a slowing of EB-5 regulatory actions, this may also reflect an increased awareness by industry participants to the requirements of the securities laws. Notably, EB-5 matters were not expressly identified in the 2020 SEC Enforcement Annual Report, nor included as SEC or FINRA 2021 obert V. Cornish, Jr. is a securities litigation attorney serving EB-5 investors and market participants who applies his front- line perspectives as a compliance officer and counsel for funds, broker-dealers and investment managers. Cornish has experience in litigating in state courts, federal courts and arbitration forums such as FINRA and AAA. In addition, Cornish is a certified mediator who can propose and navigate alternative paths to costly litigation. He is a graduate of Davidson College and the Cumberland School of Law of Samford University, a member of the EB-5 Securities Attorney Roundtable and is frequent speaker and commentator on securities and litigation matters. WHAT NEW TRENDS ARE YOU SEEING WHEN IT COMES TO EB-5 LITIGATION? The pandemic has rocked the real estate and construction sectors over the past 12 months, causing concern for developers and investors alike. When compounded with recent disfavor EB5 INVESTORS MAGAZINE examination priorities. Yet regulators will continue to monitor EB-5 offerings to ensure compliance with all legal requirements. The SEC has sued a number of regional centers and others for fraud relating to an EB-5 capital raise, often for misappropriating investor funds. FINRA is also involved in monitoring broker- dealer compliance, including the new Reg BI, suitability, AML, advertising, due diligence and supervision. WHAT HAS BEEN YOUR MOST IMPACTFUL LITIGATION CASE, AND WHY? My practice focuses on representing clients in regulatory investigations before the SEC and FINRA. Yet the most impactful cases are those where compliance advice in advance has eliminated large risks of enforcement and litigation. Historically, EB-5 securities matters involved immigration, real estate and other professionals who have not had extensive experience with the requirements of the U.S. securities laws and made mistakes as a result. Addressing errors in advance to bring a securities offering into compliance with legal requirements is a win both for the client and the industry. ROBERT V. CORNISH, JR. R LITIGATION ATTORNEYS LITIGATION ATTORNEYS EB5 INVESTORS MAGAZINE expressed in U.S. immigration policy, investors who were once comfortable with the U.S. markets not only wish to limit their market exposure but forego immigration completely. On the other hand, loan payments based on commercial rent and other revenue flows have slowed or even ceased, thus placing developers and regional centers in classic “Hobson’s Choices” of either angering investors or creating default risks. Litigation seems to be dealing with this dynamic more and more. WHAT HAS BEEN YOUR MOST IMPACTFUL LITIGATION CASE, AND WHY? Some of the first cases I ever worked on in a substantive manner involved the sale of toxic U.S. mortgage-backed securities by a large broker-dealer to what was perceived to be a financial backwater in its advisor network – its Hong Kong office. These cases enabled me for the first time to work with investors from abroad and learn more about how common business conduct abroad may not be appropriate for those dealing with entities subject to U.S. regulation. All parties to financial transactions in U.S. securities markets have very strong expectations of what the rule of law in the US provides. EB5INVESTORS.COM 55