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Lawrence Gerschwer

Partner
New York, (212) 468-8044
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Lawrence Gerschwer's practice focuses primarily on white-collar criminal and regulatory matters, including government investigations of securities, commodities, and government fraud, and of public corruption, both domestic and under the Foreign Corrupt Practices Act (FCPA).

Mr. Gerschwer has extensive experience in parallel proceedings and frequently defends clients in investigations and enforcement actions conducted by the DOJ, SEC, CFTC, IRS, and banking regulators, including federal and state criminal investigations, and related civil litigation. Mr. Gerschwer has also assisted numerous clients in cross-border investigations conducted by U.S. criminal prosecutors and regulators.

Prior to joining the firm in 2007, Mr. Gerschwer served as an Assistant United States Attorney for the Southern District of New York for almost nine years, where he was a member of the Securities and Commodities Fraud Unit and the Public Corruption Unit.

As a federal prosecutor, Mr. Gerschwer tried a wide variety of criminal cases and argued numerous appeals before the U.S. Court of Appeals for the Second Circuit. His noteworthy prosecutions included cases related to the massive accounting fraud schemes at Adelphia Communications and at U.S. Foodservice, a U.S.-based subsidiary of the Dutch holding company, Royal Ahold, both of which involved parallel SEC investigations. Mr. Gerschwer also prosecuted cases involving fraud in the foreign exchange (forex) market that involved parallel CFTC investigations and a court-appointed receiver.

In the public corruption arena, Mr. Gerschwer investigated and prosecuted numerous defendants for their participation in a massive municipal corruption scheme to bribe New York City property tax assessors. The scheme, which resulted in charges of RICO, mail fraud, wire fraud, and bribery, was described by New York Mayor Michael Bloomberg as "the largest and most financially damaging corruption scheme ever conducted within city government."

Before joining the U.S. Attorney's office in 1998, Mr. Gerschwer spent four years as a litigation associate at Wachtell, Lipton, Rosen Katz. He also served as a law clerk to the Honorable Wilfred Feinberg, U.S. Court of Appeals for the Second Circuit, from 1993-1994.

Mr. Gerschwer was a member of the Phi Beta Kappa Honor Society at SUNY Binghamton. At Columbia Law School, he was a Harlan Fiske Stone scholar, received the Alfred Forsythe Award, and served as a senior editor of the Columbia Law Review.

Insider Trading
Represent an alleged downstream "tippee" in an insider trading prosecution by the DOJ and a parallel SEC civil enforcement action. (Ongoing)
Stock Manipulation
Represent an analyst in civil litigation alleging stock manipulation by short sellers. (Ongoing)
Auction Rate Securities
Represent a supervisor at a broker-dealer in an investigation by state securities regulators into allegations of manipulation in the market for Auction Rate Securities. (Ongoing)
Collateralized Debt Obligations (CDOs).
Represent a senior portfolio manager at an asset management firm in an SEC investigation of potential fraud in the management of several multi-billion dollar CDOs. (Ongoing)
Cross-Border Banking Investigation
Represented multiple employees of a multinational bank in investigations by the U.S. Attorney’s Office, state criminal prosecutors, SEC, CFTC, U.S. banking regulators and foreign regulators regarding an alleged scheme to overvalue a commodities derivative trading portfolio. Following multiple interviews with law enforcement and regulatory agencies, no charges were brought against clients. (2008)
Credit Crisis
Represent the former CFO of one of the largest U.S. mortgage originators in a DOJ investigation, parallel SEC civil enforcement action, and related shareholder litigation arising from the credit crisis. (Ongoing)
Stock Options Backdating
Represent the founder and former CEO of a high-tech company in parallel DOJ and SEC investigations of alleged stock options backdating. (Ongoing)
Accounting Fraud
Represented an auditor at an international accounting firm in an SEC investigation involving allegations of securities fraud and improper professional conduct arising out of the audit of a public company at which numerous members of top management were criminally convicted of engaging in a massive, collusive accounting fraud. After a Wells process, the SEC staff terminated the investigation without commencing an action against the client. (2008)
Foreign Corrupt Practices Act (FCPA)/Antitrust Investigation.
Represented a foreign national and employee of a Fortune 100 multinational corporation in cross-border investigation of potential FCPA and criminal antitrust violations. (2009)
Attorney General Investigation
Represented the principals of a large real estate appraisal firm in an investigation by a state Attorney General into the role of property appraisers in the mortgage crisis. (2009)
Federal Bank Regulatory Investigation
Represented an executive of a large mortgage originator in an investigation by federal banking regulators into the relationship between mortgage originators and appraisers and its impact on the credit crisis. (2009)
Foreign Corrupt Practices Act (FCPA) Internal Investigation.
Conducted an internal investigation into potential FCPA violations at a foreign subsidiary of a Fortune 500 multinational corporation. Conducted more than 60 interviews of employees, reviewed business lines and relationships with key customers and distribution channel, and conducted forensic analysis of accounting records and internal controls. Investigation included a review of business units in more than 15 countries to assess FCPA risks. (Ongoing)
Cross-Border Banking Investigation
Represent several foreign bankers in parallel investigations by the DOJ, SEC and IRS into the cross-border activities of a Swiss bank. (Ongoing)
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