Scott's victories include complete defense verdicts in a $900 million securities arbitration involving allegedly fraudulent analyst research, and a $450 million securities arbitration involving complex hedging transactions with synthetic derivatives. He has also represented a number of public and private companies, senior corporate executives, investment advisers, and hedge funds in a variety of securities fraud matters. These matters include direct liability cases, derivative actions, and class actions involving insider trading, accounting fraud, earnings management, and market timing.

Scott has successfully represented clients throughout the country in federal and state jury trials, bench trials, arbitrations (AAA, NASD, NYSE, FINRA), and mediations. He has represented clients in cases in Arkansas, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Massachusetts, Michigan, Missouri, New York, Nebraska, Oklahoma, Oregon, Texas, Utah, and Wisconsin. In addition, Scott has successfully defended clients in investigations and regulatory proceedings involving the SEC, the Department of Justice, the New York Attorney General, the NYSE, the NASD, as well as various state securities regulators.

Scott previously worked with former SEC Chairman Harvey Pitt at Fried, Frank, Harris, Shriver & Jacobson. He also was associated with Cravath, Swaine & Moore in New York, and Kirkland & Ellis in Chicago.  

Scott is a frequent speaker on securities and hedge fund topics and is sought after for his opinions by the financial media, including the Wall Street Journal, New York Times, Forbes, Barron’s, Chicago Tribune, U.S. News and World Report, BusinessWeek, and the Washington Post.

Georgetown University Law Center (J.D., cum laude, 1991)

SEC and FINRA Investigations and Enforcement Actions

Securities Fraud Litigation

Corporate Control and Shareholder Disputes

Complex Broker-Dealer Litigation

Broker-Dealer Employment Disputes

Complex Commercial Litigation

Litigation and Arbitration

• Currently representing a hedge fund in connection with a $50 million securities dispute involving residential mortgage-backed securities.  This case involves a novel application of Section 11 of the Securities Act to misstatements and omissions in registration documents incorporated by reference into private offering memoranda.
• Defended former managing director of a major New York broker-dealer in a $900 million securities arbitration alleging fraudulent analyst research involving WorldCom. Arbitration Panel awarded a complete defense verdict.
• Obtained complete defense verdict and expungement in a $450 million securities fraud arbitration brought against a major New York broker-dealer and one of its former managing directors. The case involved a series of allegedly improper hedging transactions in the over-the counter derivatives markets. 
• Defended a well-known New York real estate developer in a lawsuit alleging that “hotel condominium units” were marketed and sold as unregistered securities. 
• Defended a major New York broker-dealer in a $10 million federal jury trial involving alleged securities fraud in connection with complex futures and derivative transactions on both the CME and Globex.  
• Defended a major New York broker-dealer in a multi million dollar CFTC Reparations proceeding alleging improper use of "held" versus "not held" orders in liquidating large equity futures positions.  
• Defended the director of a $1 billion international public company in a federal shareholder securities fraud class action brought by Milberg Weiss. Argued and won motion to dismiss with prejudice based on novel PSLRA arguments, and successfully defended this ruling on appeal before the U.S. Court of Appeals, 8^th Circuit. 
• Defended several hedge funds in connection with market timing investigations and related civil litigation. Avoided imposition of any fines, penalties or other sanctions by regulators.  
• Obtained dismissals with prejudice in federal and state civil actions brought by insurance companies seeking to prevent hedge funds from using variable annuities as an investment platform.

Enforcement and Internal Investigations

• Currently representing a privately held insurance company and its principal in connection with ongoing securities investigation by the Texas State Securities Board involving life settlements. 
• Represented a public company in internal investigation and companion SEC investigation concerning possible misappropriation of assets, invalid registration and issuance of employee stock to consultants, manipulation and other improper conduct by former CEO and other outside parties. Completed investigation and reported analysis to internal and external constituencies in four months. Successfully avoided the imposition of any fines, penalties, or other sanctions by regulators.  
• Represented a high-profile registered representative at a major Wall Street investment bank in a variety of regulatory and civil investigations and proceedings before the SEC, NASD, NYSE and New York Attorney General's office, as well as in a number of customer arbitrations and civil actions. Successfully avoided any and all regulatory and civil liability.  
• Defended a public company CFO in connection with an SEC investigation of complex accounting fraud and earnings management issues involving treatment of advertising expenses. Prepared Wells submission that resulted in SEC's declining to pursue any charges.  
• Defended a well-known, online stock analyst in an SEC civil action seeking penalties under the Investment Advisers Act. Developed novel First Amendment defense to prevent the SEC from suppressing protected speech on the Internet.  
• Obtained favorable settlement on behalf of a private oil and gas company in connection with regulatory investigation by the Texas State Securities Board.  
• Defended the branch manager of a major New York broker-dealer in an SEC administrative enforcement action alleging that he failed to supervise a stock broker who engaged in a Ponzi scheme with his clients.  
• Represented a Fortune 500 company director in connection with an SEC insider trading investigation involving a series of exchange fund transactions.  This case involved a novel and aggressive application of the insider trading rules and related penalty provisions by the SEC. After receiving a Wells notice, successfully persuaded SEC not to pursue charges or impose any sanctions or penalties.

General Counseling and Compliance

• Advising a hedge fund in connection with a prime broker dispute regarding margin liquidation and related trading issues.
• Advising a family office/fund of funds in connection with hedge a fund dispute over fund manager’s misrepresentations regarding investment strategy and failure to diversify in connection with life settlement investments. 
• Advising a family office/fund of funds in connection with a due diligence investigation of sub-managers and underlying hedge funds. 
• Advising a hedge fund in connection with an accounting dispute over treatment of hedging gains and losses and related SWAP issues. 
• Advised a hedge fund in connection with CDO and CDO² issues. 
• Advised a hedge fund and its registered investment advisor in connection with SEC audit. 
• Advised a hedge fund in connection with investor relations and related redemption issues.  
• Created and coordinated an “electronic town hall” to address investor issues. 
• Advised a hedge fund in connection with trading losses involving subprime mortgage-backed securities.  Successfully negotiated substantial settlement from counterparty using “litigotiation.” 
• Advised a hedge fund in connection with investor’s threatened claim for “selective disclosure” in connection with thwarted redemption.

Named to The Best Lawyers in America (2009-2012)

Named as an “Illinois Super Lawyer” (2007)

Named a "Leading Lawyer” in a survey of lawyers by the Leading Lawyers Network (2007-2011) 

Named as a Lawdragon 3000 Leading Lawyers in America (2010)

"PR Through the Eyes of the Lawyers,” Legal PR Chicago (June 2010)

“Broker-Dealer and Investment Advisor Issues,” Hot Topics: Financial Services Update 2009 (December 2009)

National Society of Compliance Professionals (NSCP)

Participated in Federal Public Defender Program in Chicago, IL. 

Park District of Highland Park (Commissioner)

State of New York  

U.S. District Court, Northern District of Illinois

U.S. District Court, Central District of Illinois

U.S. District Court, Southern District of New York

U.S. Court of Appeals, Seventh Circuit

Federal Trial Bar