Tom Sporkin Quoted in Law360 Article, "SEC Shows Stiff Hand for Cooperation Deals Gone Awry"
March 21, 2016
Tom Sporkin was quoted in Ed Beeson's Law360 article, "SEC Shows Stiff Hand for Cooperation Deals Gone Awry," on March 21, 2016.
The U.S. Securities and Exchange Commission delivered a stern warning to would-be cooperators on Monday when it asked a New York federal judge to throw the book at a former Euro Pacific Inc. broker who it said broke his vow to testify truthfully at a civil insider trading trial of two former colleagues he tipped to a $1.2 billion IBM acquisition.
In what appears to be the first instance of the agency seeking to sanction someone for breaking a cooperation agreement, the SEC said its deal with Thomas C. Conradt is kaput and that, instead of recommending he pay a mere $2,533 in civil penalties, he should face more than $2.9 million in penalties over his actions at last month's trial against Daryl Payton and Benjamin Durant.
"When you sign that cooperation agreement, that's the end of it. Period," said Thomas Sporkin, a former senior SEC enforcement official who's now at BuckleySandler LLP. "You need to be resolute ... that you are putting this behind you.
"The last thing you want to do is lie in front of a judge," he added.