Government Enforcement & Internal Investigations partner Philip Moustakis was quoted in a Private Funds CFO article titled, “SEC Drops MNPI Case.”

“The case also offered ‘substantial risks’ to regulators they had taken to trial,” said Philip.

“After all, the outside consultant the SEC alleges should have been subject to Silver Point’s information barrier policies and procedures was a lawyer, and expert in bankruptcy law and well aware of his contractual, ethical and legal obligations not to disseminate confidential information learned in the course of his participation in creditors’ committees,” Philip continued. “In other words, the commission would have to argue Silver Point’s information barrier policies and procedures were not reasonably designed because outside counsel was not subject to Silver Point’s internal oversight and controls.”

“This wasn’t the only problem with the case,” Philip added. “Much of the ‘relevant evidence’ resided with that lawyer, who is now deceased.”

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Philip Moustakis

(212) 574-1604
moustakis@sewkis.com

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