Harris Beach provides a full complement of services to financial institutions of all sizes, from the largest national and international banks to local banks and credit unions. Our attorneys have extensive experience handling virtually every type of litigation a banking institution encounters, on an individual and class basis. Our attorneys also handle matters before state and federal agencies including the New York Department of Financial Services (DFS), Federal Deposit Insurance Corporation (FDIC), National Credit Union Association (NCUA), Office of the Comptroller of the Currency (OCC), the Consumer Financial Protection Bureau (CFPB), the Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC).
Profile
Services
Experience
People
Bank Operations Litigation
- Defending large individual and class-action claims related to fraud and misconduct perpetrated using accounts, including aiding and abetting claims for alleged failure to meet Anti-Money Laundering/Bank Secrecy Act (BSA/AML) requirements
- Defending regulator enforcement actions against institutions and their employees
- Handling all types of claims brought under Uniform Commercial Code – Article III (Negotiable Instruments), Uniform Commercial Code Article IV (Bank Deposits and Collections), and Uniform Commercial Code Article IV(A) (wire transfers)
- Handling all types of claims brought under the Electronic Fund Transfer Act (EFTA), including Regulation E, debit cards, credit cards and Automated Clearing House (ACH) transactions
- Defending individual and class claims under consumer protection statutes, including the Fair Debt Collection Practice Act (FDCPA), Fair Credit Reporting Act (FRCA) and Telephone Consumer Protection Act (TCPA)
- Defending home and auto lending claims, on an individual and class-wide basis, related to underwriting, origination, servicing and collection compliance under consumer lending statutes and predatory lender liability claims, including Truth in Lending Act (TILA) and Real Estate Settlement Procedures (RESPA)
- Handling claims of disputed account ownership, business conflicts and divorce, and account takeovers
- Defending claims brought under Racketeer Influenced and Corrupt Organization Act (RICO)
- Defending safe deposit box claims
- Loss mitigation/collections, garnishments, attachments, replevin and repossession
Regulatory Compliance
Bank Secrecy Act/Anti-Money Laundering
- Reviewing and troubleshooting weaknesses in BSA/AML compliance programs
- Defending against examinations, government investigations and enforcement actions
- Engaging FinCEN and the federal banking agencies to resolve outstanding compliance and enforcement matters
- Advising banks on making BSA/AML compliance programs more risk-based and efficient
- Implementing new policies, procedures and controls to comply with the Anti-Money Laundering Act of 2020
- Mitigating third-party and fintech risks
- Defending and protecting financial institutions from disclosure of protected Suspicious Activity Report (SAR) filings
Consumer Financial Services
- Drafting Deposit Agreements
- Drafting disclosure and notification language
- Counseling on fair lending compliance, including redlining and reverse redlining
Elderly and Vulnerable Customers
- Advising on compliance concerns to prevent and detect financial exploitation of elderly and other vulnerable persons and attendant reporting requirements
Licensing
- Counseling on special concerns related to small business lending, including marketplace lending and merchant cash advances
- Assisting in third-party due diligence
Cybersecurity and Protection of Customer Data
- Counseling on compliance with Gramm Leach Bliley and New York’s Cybersecurity Regulation
- Assisting in third-party oversight
Examinations and Training
- Counseling on pre-examination compliance audits and representation during examinations
- Assisting in development of internal policies and procedures, including employee training
Representative Litigation Matters
- 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
- Obtained dismissal and summary judgment of investor class-action lawsuit asserting aiding and abetting, negligence and unjust enrichment claims in excess of $44 million against a large financial institution arising from massive Ponzi scheme perpetuated by “German Bernie Madoff”
- 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 summary judgment in favor of large financial institution on negligence and unjust enrichment claims brought by large architectural and engineering company
based upon a more than $40 million employee embezzlement by company officers - 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
- Obtaining emergency guardianships in cases of suspected and confirmed financial exploitation and abuse
Additional Representative Matters
- Defended a regional bank against negative BSA/AML examination findings
- Advised a regional bank on Customer Identification Program, Customer Due Diligence, and OFAC compliance
- Represented individuals in enforcement actions before federal banking agencies
- Advised a regional mortgage servicer on compliance with DFS’s 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
