July 16, 2016
Partner John Dellaportas was quoted in the Law360 article “Why Financial Crisis Cases Against Wall Street Execs Veered Off Target.” Mr. Dellaportas acted as lead trial counsel to Bruce Bent, co-inventor of the money market fund, and his son Bruce Bent II, in a U.S. Securities and Exchange Commission (SEC) civil enforcement action against them and their company, Reserve Management Co. The SEC alleged that the Bents misled investors prior to the fund’s collapse; however, a federal jury ultimately rendered a unanimous verdict in their favor, clearing them of all SEC Rule 10b-5 and other securities fraud charges. The decision was cited by Law360 as one of the SEC’s big losses in recent financial crisis cases. “From the jury’s perspective, I think the jury understood the government was blaming the victims,” Mr. Dellaportas said. “That’s one of the great mysteries of the financial crisis: why the SEC chose the targets it did. I fear there may have been a lot of political considerations as opposed to the merits of the case.”
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