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Compliance and Litigation For Financial Institutions

Sector

Harris Beach represents a wide range of financial institutions, including regional, national and international banks in addition to regional and federal credit unions regarding regulatory compliance and related litigation.

Our attorneys handle issues related to rules promulgated and enforced by state and federal regulators including the New York Department of Financial Services (DFS), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Consumer Financial Protection Bureau (CFPB), the Financial Crimes Enforcement Network (FinCEN), the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), the National Credit Union Association (NCUA) and other various state, federal and international law enforcement authorities.

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Compliance and Litigation For Financial Institutions

Sector

■ Profile

Harris Beach represents a wide range of financial institutions, including regional, national and international banks in addition to regional and federal credit unions regarding regulatory compliance and related litigation.

Our attorneys handle issues related to rules promulgated and enforced by state and federal regulators including the New York Department of Financial Services (DFS), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Consumer Financial Protection Bureau (CFPB), the Financial Crimes Enforcement Network (FinCEN), the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), the National Credit Union Association (NCUA) and other various state, federal and international law enforcement authorities.

■ Experience

  • Obtained dismissal with prejudice of investor class action lawsuit asserting Racketeer Influenced and Corrupt Organizations Act (RICO) and conspiracy claims against a large financial institution and seeking treble damages in excess of $200 million resulting from massive fraud perpetrated by a bank customer.
  • Successfully resolved aiding and abetting and fraudulent transfer claims following highly publicized three-week part bench/part jury trial brought against a large financial institution by receiver appointed in SEC enforcement action arising from $68 million Ponzi scheme targeting Haitian-American community.
  • Obtained dismissal and summary judgment of claims including allegations of Bank Secrecy Act/Anti-Money Laundering and compliance failures in excess of $44 million against a large financial institution arising from massive Ponzi scheme perpetuated by “German Bernie Madoff”.
  • Obtained summary judgment in favor of large financial institution on negligence and unjust enrichment claims brought by large architectural and engineering company based upon employee embezzlement by company officers in excess of $40 million.
  • Obtained unanimous appellate victory and judgment for large national bank in dispute involving a failed loan/partnership regarding the development of a $13 million low-income/senior housing facility which was designed to utilize millions of dollars in federal and state tax credits.
  • Successfully obtained appointments of emergency temporary guardians in hotly contested cases of elder financial exploitation and abuse.
  • Defended national bank in litigation related to sanctions implemented by the Treasury Department’s Office of Foreign Assets Control (OFAC Sanctions).
  • Represented a syndicate of national and regional banks in an international arbitration to enforce rights under an insurance policy used as collateral for a multi-million dollar loan. Issues in arbitration included insurance coverage, disclosure of material facts, proper usage of an interest rate collar as chosen derivative to hedge interest rate risk associated with a loan tied to LIBOR.
  • Advised a regional bank on FinCEN Customer Identification Program and Customer Due Diligence Rules.
  • Advised a regional mortgage servicer on compliance with New York Department of Financial Services’ Cybersecurity Regulation.
  • Defended an auto lender in a consumer class action related to repossession practices.
  • Represented a mortgage lender in a dispute involving disclosures required pursuant to the Real Estate Settlement Procedures Act and the Truth in Lending Act.
  • Defended a regional bank against allegations of “redlining” fair lending violations

■ Services

Regulatory Compliance

Bank Secrecy Act
  • Anti-money laundering and “know your customer” requirements
  • Anti-terrorism financing compliance
  • Identifying, reviewing, and reporting suspicious transactions
Consumer Financial Services
  • Drafting disclosure and notification language
  • Fair lending compliance, including redlining and reverse redlining
Elderly and Vulnerable Customers
  • Compliance concerns to prevent and detect financial exploitation of elderly and other vulnerable persons
  • Emergency guardianships
Licensing
Special concerns related to small business lending including marketplace lending and merchant cash advances
Third-party due diligence
Cybersecurity and Protection of Customer Data
  • Cybersecurity and data protection in compliance
  • with Gramm Leach Bliley and New York’s Cybersecurity Regulation
  • Third-party oversight
Examinations and Training
  • Pre-examination compliance audits and representation during examinations
  • Development of internal policies and procedures, including employee training

Litigation

  •  Defending enforcement actions against institutions and their employees
  •  Defending individual and class action claims related to consumer and account services
    • Mortgage lending, negotiable instruments, bank deposits and collections, credit cards, debit cards, electronic funds transfers, Automated Clearing House (ACH) transactions, wire transfers, personal loans and guarantees, and auto lending
  •  Representing lenders in litigation and arbitration for claims related to all phases of lending
    • Underwriting, origination, servicing and collection compliance
  •  Defending negligence or aiding and abetting claims for alleged failure to meet Anti-Money Laundering or Bank Secrecy Act obligations
  •  Defending claims related to disputed account ownership or unauthorized use

■ People

Elliot A. Hallak

Member
(518) 701-2748
ehallak@harrisbeach.com

Seth T. Hiland

Member
(607) 330-7721
shiland@harrisbeach.com

Ross B. Hofherr

Member
(212) 313-5482
rhofherr@harrisbeach.com

Constantine P. Lizas

Member
(202) 975-9780
CLizas@HarrisBeach.com

Patrick M. Malgieri

Counsel
(914) 298-3000
pmalgieri@harrisbeach.com

Julian B. Modesti

Member
(315) 214-2004
jmodesti@harrisbeach.com

Beth Ela Wilkens

Counsel
(585) 419-8645
bwilkens@harrisbeach.com

Harris Beach and its subsidiaries provide a full range of legal and professional services for clients across New York state, as well as nationally and internationally. Harris Beach is among the country’s top law firms as ranked by The National Law Journal and is among the BTI Elite law firms based on in-depth interviews of more than 600 corporate counsel at the world’s largest and most influential companies. Our clients include Fortune 100 corporations, privately-held companies, emerging businesses, public sector entities, not-for-profit organizations and individuals. Principal industries we represent include education, energy, financial, food and beverage, health care, insurance, manufacturing, medical and life sciences, real estate developers, and state and local governments and authorities.

Industry Teams
Automotive and Vehicle Dealerships
Blockchain and Digital Assets 
Cannabis
Construction and Surety
Educational Institutions Higher Ed
Educational Institutions K-12
EMS and Fire Protection Providers
Energy
Financial Institutions and Capital Markets
Food and Beverage
Health Care
Industrial and Consumer Manufacturing
Medical and Life Sciences
Municipalities and Local Agencies
Nanotechnology
Photonics
Racing and Gaming
Real Estate Developers
Science and Technology
Telecommunications and Media
Unmanned Aircraft Systems
USA Collegiate Sports
Veterinary Medicine

Practices
Alternative Dispute Resolution
Appellate
Business and Commercial Litigation
Collection Law
Commercial Real Estate
Corporate
Cybersecurity Protection and Response
Diversity Compliance
E-Discovery (e-infoSM)
Employee Benefits
Employment Litigation
Environmental Law
Environmental, Social and Governance (ESG)
Financial Restructuring, Bankruptcy and Creditors’ Rights
Government Compliance and Investigations
Health Law
Immigration Law
Insurance Coverage
Intellectual Property Law
International Trade Law
Internet Law
Labor and Employment Law
Mass Torts and Industry-Wide Litigation
New Markets Tax Credit
Patent, Trademark and Copyright Law
Product Liability and Comprehensive General Liability
Public Finance and Economic Development
Real Property Valuation Litigation
Residential Real Estate
Tax Law
White Collar Crime
Wills, Trusts and Estates

Consulting Services
HB Solutions LLC
Collegiate Sports Compliance
Data Privacy and Cybersecurity
Economic Development and Public Affairs
Educational Institution Assistance
EMRG® (E-Discovery Management Resources Group)
Energy
Health and Human Services
Human Resources
Information Technology
Marketing and Communication Services
Municipal and Local Agency Assistance

HB Cornerstone LLC
Owner Representation
Design Services
Facilities Consulting
Move Management

Caetra.io
CyMetric (Cybersecurity Regulation Compliance Software)

Offices throughout New York:

Albany
677 Broadway
Albany, NY 12207
518-427-9700

Buffalo
726 Exchange Street
Buffalo, NY 14210
716-200-5050

Ithaca
119 East Seneca Street
Ithaca, NY 14850
607-273-6444

Long Island
333 Earle Ovington Boulevard
Uniondale, NY 11553
516-880-8484

New York City
100 Wall Street
New York, NY 10005
212-687-0100

Rochester
99 Garnsey Road
Pittsford, NY 14534
585-419-8800

Saratoga Springs
513 Broadway
Saratoga Springs, NY 12866
518-587-0551

Syracuse
333 West Washington Street
Syracuse, NY 13202
315-423-7100

White Plains
445 Hamilton Avenue
White Plains, NY 10601
914-683-1200

Offices also in:

New Haven, CT
195 Church Street
New Haven, CT 06510
203-784-3159

Newark, NJ
One Gateway Center
Newark, NJ 07102
973-848-1244

Washington, DC
800-685-1429

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© 2022 Harris Beach PLLC

Content current as of March 23, 2023 9:05 pm