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    Global Problem Solving from Covington: Deal with Complex Problems Anywhere in the World

    • Apr 08, 2021

David L. Kornblau

Partner

New York +1 212 841 1084

  • About
  • Representative Matters
  • Credentials
  • About

    Clients turn to David Kornblau, chair of the firm’s Securities Enforcement practice group, to represent them in sensitive and complex investigations, securities litigation, and internal investigations.

    Chambers USA has ranked him for many years as one of the nation’s leading practitioners in securities enforcement, noting that he is "particularly adept at analyzing the weakness of a case through the prism of litigation and casting his clients' interests in the best possible light." His most recent ranking included a comment from a client who praised his "excellent judgment and perfect diplomatic touch with regulators."

    David’s clients include investment banks, public companies, stock exchanges, asset management firms, senior executives, portfolio managers, and traders. As a former senior SEC Enforcement official and SEC trial lawyer, David uses his in-depth knowledge of the agency’s internal workings and personnel to help clients successfully navigate potentially damaging investigations. And as a former senior member of a sophisticated in-house legal department, he knows the importance of handling matters cost-effectively, communicating clearly and concisely, and keeping a keen eye on the client’s key strategic objectives.

    A ten-year veteran of the SEC’s Division of Enforcement, he served as an SEC trial attorney and Chief Litigation Counsel during the “Enron Era” of large-scale corporate investigations and heightened enforcement activity. He also served as a Special Assistant U.S. Attorney in a criminal securities fraud prosecution. Before joining Covington in 2009, David was a Managing Director and the Head of Global Regulatory Affairs at Merrill Lynch, where he oversaw the firm’s responses to all regulatory and law-enforcement investigations.

    Areas of Expertise

  • Practices and Industries
  • Representative Matters
    • Negotiated a global settlement terminating five separate SEC investigations of the New York Stock Exchange. No individuals were charged, and no intentional wrongdoing was alleged.
    • Achieved settlements with the SEC for two broker-dealers limited to alleged books-and-records violations.  
    • Persuaded the SEC to drop an intensive investigation of a public company’s revenue recognition practices. 
    • Defended a senior executive of a public company and a former senior portfolio manager of a large hedge fund in separate SEC insider trading investigations. Neither client was charged.
    • Handled a novel and cost-effective settlement of an emergency SEC administrative action against a public company to deregister its stock based on its failure to file quarterly and annual reports. The settlement, achieved in eight days, allowed trading of the company’s stock to resume immediately and relieved the company of any obligation to cure its past filing deficiencies.

    • Achieved a highly favorable settlement for the New York Stock Exchange in a widely reported SEC action involving the exchange’s dissemination of market data. No fraud or intentional wrongdoing was alleged, and no individuals were charged.
    • Convinced a federal judge to narrow the scope of an SEC asset-freeze order in litigation against sixteen members of the Wyly family in the Southern District of New York.  
    • Significantly reduced the severity of SEC sanctions against two asset managers accused of breaching their fiduciary duties.
    • Represented a large regional bank in an SEC inquiry concerning its mortgage loan repurchase reserve. The SEC took no action against our client.
    • Represented a global technology company in an SEC investigation of its revenue recognition practices. The SEC took no action against our client.
    • Defended swaps traders in a CFTC investigation of potential manipulation of an interest-rate benchmark.
    • Represented FX traders in the global investigations of possible manipulation of foreign currency exchange markets.
    • Represented a major investment bank in CFTC, SEC, and CBOE inquiries arising from the "flash crash" on May 6, 2010. The SEC took no action against our client.
    • Negotiated a favorable settlement on behalf of a major investment bank in a FINRA investigation of alleged large proprietary wash sales.
    • Conducted an internal investigation on behalf of a financial services firm into an alleged retaliatory discharge by its chief compliance officer.
    • Represented a head subprime mortgage trader and other mortgage trading desk employees of several major investment banks in investigations by the SEC, the U.S. Attorney’s Office for the Northern District of California, the New York Attorney General’s Office, and the Nevada Attorney General’s Office. No charges were brought against any of our clients.
    • Defended Merrill Lynch in dozens of investigations concerning, for example, subprime mortgage securities, auction rate securities, information barriers, institutional sales and trading, retail brokerage, pension consulting services, research analysts, mutual funds, municipal securities, and Treasury securities.

    Areas of Expertise

  • Credentials
    Education
    • Harvard Law School, J.D., 1986
        • cum laude
        • Harvard Law Review, Member, Board of Editors
    • Princeton University, A.B., 1983
        • cum laude
        • Physics
    Bar Admissions
    • New York
    Government Experience
    • U.S. Securities and Exchange Commission
    • U.S. Department of Justice
    Judicial Clerkship
    • Hon. Charles Merrill, U.S. Court of Appeals, Ninth Circuit, 1986 - 1987
    Pro Bono
    • Co-lead counsel for the Disability Rights Network of Pennsylvania in a landmark civil rights action and settlement, which achieved a state-wide overhaul of Pennsylvania’s policies and practices for prisoners with serious mental illness.
    Accolades
    • Benchmark Litigation, White Collar Crime Local Litigation Star and National Practice Area Star 
    • The Legal Aid Society, Pro Bono Publico Award (2016) 
    • Chambers USA - America's Leading Business Lawyers, Securities/Regulation/Enforcement (2012-2020)
    • Legal 500 US, Litigation: Securities (2015-2017) and Financial Services: Litigation (2014) 
    • Finalist, Public Justice Foundation Trial Lawyer of the Year Award (2015)
    • Burton Award for Legal Achievement (2013)
    • New York Super Lawyers, Securities Litigation (2013-2019)

    Areas of Expertise

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