Richard M. Strassberg

Mr. Strassberg represents individuals and entities in almost all the major white collar cases that have occurred over the last several years. His representative matters include:

Individual Representations

• John Stumpf, former Chief Executive Officer of Wells Fargo Bank, in securities litigation and various governmental investigations arising from the allegations that Wells Fargo’s Community Bank opened millions of unauthorized accounts for customers. 

• Maria das Gracas Silva Foster, the former CEO of Petrobras, in civil securities litigation in the Southern District of New York. Mr. Strassberg has been retained as lead trial counsel for Ms. Foster in this case asserting that Petrobras’ disclosures relating to its financial statements were false and misleading because they failed to disclose the alleged corruption and bribery involving Petrobras’ employees, Brazil’s ruling political parties, and many of Brazil’s largest contractors. 
• Former SAC Capital Advisors portfolio manager, Mathew Martoma, against criminal and SEC allegations of insider trading. Prosecutors alleged that Martoma participated in the largest-ever insider trading case, committing securities fraud by trading on shares of two pharmaceutical companies using non-public information, resulting in over $276 million in gains.
• David Greenberg, a former KPMG partner, in a case described by the government as the largest criminal tax case in U.S. history. After a two-and-a-half month trial, the jury acquitted Mr. Greenberg of all charges, while convicting all of the other defendants of multiple counts. In addressing the jury following Mr. Strassberg's summation, the government conceded that the key cooperating witness in the case "got destroyed on cross-examination by Mr. Strassberg" and that his examination was so effective that the prosecutor "personally wanted to crawl under the table." Mr. Strassberg was recognized by The American Lawyer as "Litigator of the Week" as a result of his advocacy at the trial.
• Jon Paul Rorech, a Deutsche Bank trader, in the first-ever insider trading case involving credit default swaps. After a month-long bench trial, the Court dismissed all charges against Mr. Rorech, providing Mr. Strassberg's client with a sweeping victory in a landmark case regarding practices in the fixed income markets.
• Richard Lane, the former President of the Worldwide Medicines division of Bristol-Myers Squibb (BMS), in criminal and civil securities cases involving allegations of fraud in connection with so-called "channel stuffing" practices at BMS. After more than 5 years of pre-trial litigation, Mr. Strassberg was able to convince the government to agree to dismiss the charges against Mr. Lane as part of a deferred prosecution agreement. Mr. Strassberg secured this victory after he had convinced the District Court to dismiss certain government theories of liability and had that decision affirmed on appeal by the Third Circuit.
• The CFO of one of the world’s largest pharmaceutical companies in a civil securities litigation in the Southern District of New York. Mr. Strassberg was brought in to be lead trial counsel for the CFO in this case alleging that the company’s disclosures relating to the criminal investigation of its off- label promotion of certain drugs violated the securities laws.
• The former CEO of a Fortune 30 health care company in connection with an extensive investigation and Wells process by the SEC relating to alleged fraudulent disclosure and insider trading violations.
• The current CEO of a large financial institution, in connection with investigations by the SEC, the New York Attorney General's Office and the U.S. Congress into transactions related to the credit crisis.
• The head of the China business of Avon Products, Inc., in connection with DOJ and SEC investigations of potential FCPA violations relating to the marketing and sale of products in China, including the alleged provision of gifts and entertainment to Chinese officials.
• The president of a foreign corporation in connection with DOJ and SEC investigations of potential FCPA violations relating to the award of telecommunications contracts in the Balkans to the subsidiary of an international telecommunications company.
• The president of a foreign bank in connection with a DOJ investigation of potential FCPA violations relating to the bank’s activities in Kyrgyzstan.
• The chief legal officer of an oil and gas company in connection with a far-reaching FCPA investigation involving alleged bribery in connection with large oil and gas projects overseas.
• A former officer of Standard & Poors in connection with DOJ and SEC investigations into the rating agency’s conduct, including in the case United States v. McGraw-Hill Companies, Inc. et al, 2:13 Cv. 779 (CDCA).

Corporate Representations

• Countrywide Financial Corporation and Countrywide Home Loans in connection with a FIRREA and False Claims Act case filed against a major bank in connection with the sale of mortgage loans to Fannie Mae and Freddie Mac. The trial judge called Mr. Strassberg’s examination of a witness “a model of how I would hope the examination and cross-examination and testimony will be conducted,” noting that Mr. Strassberg’s questions were “by and large models of clarity and simplicity.” He suggested to the parties: “if you want to have a model in mind of what the Court would prefer to see, you've just seen such a model.” This was the first case to go to trial applying FIRREA to issues arising from the credit crisis, and, on appeal, the Second Circuit directed judgment be entered dismissing all claims against the defendants, resulting in a landmark victory for his clients.
• Wegelin & Co., the world’s oldest private Swiss bank, in defending against criminal tax challenges from the DOJ, IRS and U.S. Attorney’s Office that the bank assisted U.S. clients in evading their tax obligations.
• The audit committee of Puda Coal, Inc, a NYSE listed company, in conducting an investigation into allegations that several hundred million dollars of value was stolen from the company by its Chinese officers in connection with transactions involving the largest private equity fund in China, controlled by the Chinese government. Mr. Strassberg also represents the US members of the audit committee in connection with several related civil securities lawsuits.
• Direct Revenue and its founders in litigation against the New York Attorney General's office in the leading Internet spyware case in the country. The New York Attorney General's Office billed the case as the largest Internet spyware case in history and it garnered substantial media attention, including profiles in the Wall Street Journal and the New York Times, and a cover story of Business Week. Mr. Strassberg moved to dismiss the case on a variety of grounds, including the enforceability of internet contracts and the scope of authority of the New York State Attorney General in Internet cases. The court agreed and dismissed the entire case.
• A biotechnology company in connection with criminal investigations by the Department of Defense, Office of Inspector General and the U.S. Attorney’s Office into allegations of over-billing and fraud in connection with various government contracts.
• An international broker-dealer in connection with multiple investigations by FINRA and the SEC involving its fixed income business. Mr. Strassberg conducted an internal investigation, represented the company and its employees in multiple days of testimony before the regulators, and responded through written submissions and oral presentations to the issuance of a Wells notice to the client. As a result of this advocacy, the regulators ultimately declined to initiate any enforcement action against the client.
• Multiple institutional clients in connection with the public pension fund pay-to-play investigations being conducted by the New York Attorney General's office, the SEC, the New Mexico U.S. Attorney's Office and various state regulators.
• An institutional client in connection with the investigations into the municipal bond industry being conducted by the Department of Justice Anti-Trust Division as well as the SEC.

Past Representations

Among certain of Mr. Strassberg's other past cases are:

• The Martha Stewart case, representing Peter Bacanovic, Ms. Stewart's former Merrill Lynch financial advisor.
• The Enron investigation, representing a banker from a large international financial institution involved in structuring off balance sheet transactions with Enron.
• Various individuals and entities in numerous investigations conducted by the NYAG’s Office.
• Various officers of financial institutions in connection with investigations and lawsuits relating to CDOs and the credit crisis.
• Numerous investigations by various criminal and regulatory agencies into allegations of securities fraud, Foreign Corrupt Practices Act violations, health care fraud, off-label marketing of drugs, accounting fraud, anti-trust violations, price-fixing, insider trading, corporate governance violations, tax fraud, bribery of public officials and obstruction of justice.

Arbitration and Civil Litigation

In addition to his work in the white collar and regulatory arenas, Mr. Strassberg represents clients in complex civil litigation, including representations involving securities class action defense, minority shareholder rights, trade secrets, ERISA class action defense, health care and insurance litigation, and commercial disputes. Civil cases include:

• The successful defense of theft of trade secret, breach of contract and tortious interference claims against an international electronics company, including the dismissal of federal and state complaints filed in NJ courts and the defense of a two-week ICC arbitration in London.
• The successful filing of a summary judgment motion in a securities case alleging breach of fiduciary duties, resulting in the dismissal of all claims against his client.
• The resolution of a minority shareholder dispute for a client, resulting in the client receiving a multi-million dollar settlement that far exceeded the client's initial request for relief.
• The successful defense of a two-week arbitration regarding a multi-million dollar joint-venture dispute, resulting in a total victory for his client, including an award of attorney's fees.