James G. Lundy represents clients in Securities and Exchange Commission (SEC), Commodities Futures Trading Commission (CFTC), self-regulatory organization, and other financial regulatory agency investigations and examinations, and compliance and governance counseling, white collar criminal investigations, and complex business litigation.
With 12 years of senior SEC experience and more than two years of in-house experience at a futures and securities brokerage firm, Jim has developed an in-depth working knowledge of the various regulatory bodies with enforcement, examination, and policy oversight of the securities and futures industries.
Jim co-maintains Drinker Biddle’s SECurities Law Perspectives Blog, which provides reports, discussions, and analyses on noteworthy trends in the enforcement and regulatory activities of the SEC, CFTC, and other financial regulatory agencies. Jim is also a contributor to Drinker Biddle’s Broker-Dealer Law Blog, which provides practical insights on litigation, regulatory, compliance and fiduciary issues impacting broker-dealers.
During his time with the SEC, Jim worked at supervisory levels in both the Enforcement Division and the Office of Compliance Inspections and Examinations (OCIE). After nine successful years with the Enforcement Division as a senior trial counsel and as a branch chief, Jim spent his final three years with the SEC as a senior regulatory counsel in OCIE and assisted with operating the SEC’s examination program for the Midwest region.
Prior to joining the firm, Jim served as an associate general counsel at a futures and securities brokerage firm affiliated with a European-based global bank, where he handled representations before the CFTC, SEC, FINRA, Chicago Mercantile Exchange (CME), National Futures Association (NFA) and Chicago Board Options Exchange (CBOE) in matters involving complex futures, derivatives and securities trading and transactions.
Jim taught securities regulation at Loyola University for 11 years.
- Represents clients in SEC Enforcement investigations, including representing the former CEO of a registered investment adviser. Also represents clients in internal investigations related to potential SEC Enforcement investigations and OCIE examinations, including representing a $2 billion fund complex in an internal investigation.
- At the SEC, first-chaired the administrative hearing of In the Matter of Theodore Urban, a four-week trial with over 20 witnesses stemming from the investigation into Ferris, Baker Watts, Inc. and the IPOF Fund. This complex, parallel investigation resulted in eight SEC actions (seven settled) and three criminal convictions. Acted as the lead attorney for the cross appeals to the Commission from the Urban trial. The Urban case remains the first and only time that the SEC litigated, tried, and appealed failure to supervise charges against the general counsel of a financial services firm. These experiences led to the development of industry-leading knowledge of the regulatory risks posed to in-house lawyers and compliance personnel at investment management firms and broker-dealers.
- Started his Senior Trial Counsel tenure by filing the SEC’s Market Abuse Specialty Unit’s first case, which involved an options insider trading scheme against several foreign defendants, including a senior research analyst from Banco Santander. The Enforcement Director highlighted this case in testimony before the Senate Judiciary Committee.
- Concluded his tenure with the Enforcement Division by obtaining judgments in a $100 million securities fraud case in which the main defendant was sentenced to 25 years in prison in the parallel criminal case.
- Handled every type of case investigated and pursued by the SEC, including several investigations into accounting and financial statement misstatements at public companies and the involvement of their audit firms, and investigations into supervisory issues at national brokerage firms with the independent office of supervisory jurisdiction model.
- Appointed by the Hon. Judge Amy J. St. Eve of the U.S. District Court for the Northern District of Illinois to serve as independent monitor for one of the first “spoofing” manipulative trading enforcement actions instituted by the CFTC. (CFTC v. Igor B. Oystacher and 3Red Trading LLC, 15-cv-9196, N.D. Ill.)
- Successful representations as an in-house lawyer included: CFTC Enforcement investigations and examinations, FINRA investigations and examinations, CBOE investigations, an NFA arbitration, a successful argument before a CME Business Conduct Committee, and SEC Enforcement investigations and OCIE examinations.
- While in-house, acted as a representative on the Futures Industry Association (FIA) subcommittees responsible for analyzing the CFTC’s proposed rule Regulation Automated Trading (Reg AT) and submitted a memorandum to FIA on the distinguishable SEC, FINRA, and Department of Justice practices regarding obtaining algorithmic trading “source code.”
- Worked in the CME Eurodollar options and futures trading pits and the trading floor of the Chicago Board of Trade before starting a J.D./M.B.A. program.
- Regularly requested by clients to assist with high-stakes examinations to counsel clients regarding appropriate strategies to avoid significant deficiencies and enforcement referrals, and counsel clients in assessing and revising policies, procedures, processes, and controls in this aggressively evolving regulatory climate.
- At the SEC, assisted with operating the Midwest Region’s broker-dealer examination program. In this role, helped oversee approximately forty staff and OCIE’s examination program for the largest number of broker-dealers of any SEC regional office. Also served as the primary Chicago Regional Office liaison to FINRA and other regulators.
- Played a lead role for SEC Enforcement and OCIE in their coordinated efforts with the CFTC and FBI for their investigations into the failures of MF Global and Peregrine Financial Group.
Jim earned several awards during his time with the SEC, including:
The FBI's Exceptional Service in the Public Interest Award
The SEC's Shannon D. Ayers Examination Award of Excellence
The SEC's Chairman's Award for Excellence
Several SEC Director's Awards
Several SEC Special Act Awards
Awards Methodology (www.drinkerbiddle.com/content/awards)
- DePaul University, J.D.
- DePaul University, M.B.A.
- University of Illinois at Urbana-Champaign, B.A.
- Futures Industry Association, Executive Committee