Practices

Michael Watling is a partner in the Litigation & Investigations Group and co-head of the Government Enforcement and Internal Investigations Practice Group. Michael represents broker-dealers and other wealth management firms in all aspects of regulatory compliance with the Exchange Act and FINRA and other SRO rules. Michael proactively advises clients concerning sales practices, supervision and anti-money laundering compliance, market regulation and financial responsibility rules, trade reporting, advertising regulations, materiality consultations and new and continuing membership applications, corporate finance rules, and conducts regulatory diligence on wealth management-related mergers and acquisitions. Michael has had significant success representing broker-dealers and associated persons in regulatory examinations, investigations and in litigation, often resolving matters for clients without any enforcement action and achieving favorable verdicts and settlements once in litigation.

Prior to entering private practice, Michael served as both a federal prosecutor in the U.S. Department of Justice (DOJ) Tax Division and as Senior Litigation Counsel in the Enforcement Department of the Financial Industry Regulatory Authority (FINRA). During that time, Michael developed broad subject matter expertise in both securities and tax law, having handled diverse cases involving securities fraud, market manipulation, pump-and-dump schemes, tax evasion, tax shelter promoters, mortgage fraud, money laundering, programmatic supervision and AML failures, and a wide range of broker-dealer sales practice violations.

Michael also served as a Deputy Associate Counsel in the Office of the White House Counsel during the administration of President Barack Obama. While at the White House, Michael vetted presidential appointees and counseled the president and vice president on tax-related matters. Michael started his legal career as an Assistant District Attorney in Queens County, New York.

Representative Experience
  • Negotiated a ninety percent reduction of multi-million dollar pre-trial settlement offer for broker-dealer in regulatory litigation involving FINRA’s corporate finance rules.
  • Successfully defended Shopoff Securities, Inc. and its principals in a FINRA disciplinary proceeding, securing complete exoneration for entity and principals and complete dismissal of Complaint.
  • Successfully defended registered representative in FINRA cause examination involving expense reporting concerns, resulting in termination of examination with no enforcement action.
  • Negotiated settlement resolving multi-year investigation into broker-dealer supervision and reporting of registered representatives’ liens and judgments.
  • Represented numerous public companies in fraud surveillance inquiries conducted by FINRA’s National Cause and Financial Crimes Detection Program.
  • Conducted internal investigation for public company concerning potential insider trading preceding $20 billion merger announcement.
  • Advised a state-chartered trust to establish KYC procedures and anti-money laundering program for new business line involving foreign counterparties.
  • Represented fixed income trader in DOJ Antitrust Division investigation.
  • Conducted tax- and financial crimes compliance-related due diligence for wealth management division of global financial institution.
  • Represented multiple witnesses in federal criminal trial in connection with a forensic accounting investigation conducted by a global accounting firm.
Publications
Events
  • NYSBA Securities Regulation Committee Meeting (March 20, 2019)
  • Return to Work Considerations for the Financial Services Industry Webinar (May 28, 2020)
Recognition
  • Six-time recipient of FINRA’s Premier Achievement Award
  • Internal Revenue Service Criminal Investigation Division Honoree (2010)
  • Two-time recipient of US Department of Justice Tax Division Special Commendation Award (2008, 2010)
  • US Department of Justice Outstanding Attorney Award (2009)