Financial Services Investigations & Enforcement

We assist clients in all stages of an investigation, including risk and compliance management, responding to subpoenas and civil investigative demands, litigation, appeals and developing and implementing related compliance plans.

The threat of an investigation can delay or derail important business goals, tarnish reputation, and reduce consumer confidence. A single government inquiry can trigger parallel investigations or other legal actions, including white collar criminal investigations of individuals and class action lawsuits, among others. Enforcement actions may also influence ongoing supervisory relationships with federal and state regulators, resulting in significant remediation and penalties. From the outset, we help clients evaluate collateral risk beyond just the investigation itself, considering the larger picture and impact of all decisions.

Our team has experience counseling clients across sectors, including consumer financial services, fintech, social media, retail, healthcare and the gig economy. We also advise on emerging issues, such as AI and privacy, and counsel new industries, including our expansive roster of fintech and “big tech” clients.

We have a history of obtaining positive outcomes for our clients, including closures, declinations, and favorable non-public settlements, and our litigators frequently win motions to dismiss, summary judgments, jury trials and appeals.

Our team has successfully litigated and resolved investigations and enforcement actions conducted by state and federal agencies. Select representations are listed below. Many of our greatest successes, however, are not public because we convinced an enforcement agency not to take action.

• Assisted clients in several CFPB examinations and investigations related to (among other things) sales practices, overdraft and NSF fees, add-on products, student loan servicing, payments (including garnishment, setoff, and escheatment) and lending by nonbank institutions. This includes representing a large bank in one of the CFPB’s first enforcement actions, a joint effort with the FDIC alleging deceptive sales practices for add-on products.
• Acted as lead counsel in responding to CFTC investigations on behalf of major financial firms and executives across a wide range of matters involving allegations of market misconduct in derivatives and cryptocurrency markets.
• Defended mortgage lenders in DOJ and HUD investigations alleging fair lending discrimination in mortgage originations.
• Represented FHA-approved mortgage lenders in HUD Mortgagee Review Board actions, matters before HUD’s Office of Hearings and Appeals, and audits by HUD’s Office of Inspector General.
• Represented a nonbank corporation in a dispute with the California Department of Financial Protection and Innovation (DFPI) regarding its bank partnership business model and whether loans made under such a partnership are subject to DFPI jurisdiction.
• Advised and represented multiple banks and financial institutions in investigations by Congress, DOJ, multiple U.S. Attorneys and District Attorneys offices, the SBA IG, FDIC IG, FBI and IRS, regarding potential fraud in applications for government-backed PPP loans.
• Represented a company in FTC investigation into fees and tenant screening practices.
• Represented a consumer financing company in an FTC investigation involving claims-substantiation in B2C advertising.
• Defended multiple entities in a multi-state enforcement matter involving a data breach examination that started with the Multi-State Mortgage Committee (MMC) and evolved into an investigation by more than 40 state mortgage regulators.
• Advised and represented numerous lenders in New York Department of Financial Services (NYDFS) examinations and investigations into compliance with its Cybersecurity Regulations, including representing a lender in the Department’s first consent order.