Jack has broad and deep experience in investment products and strategies, Modern Portfolio Theory, damage calculations, supervision and compliance, securities rules and regulations, Registered Investment Advisor practice, and insurance. He is also an expert in statistical analysis, modeling, and the visual analysis of large datasets. Since 2004, Jack has been retained in over 250 arbitration cases, participated in dozens of mediations, and has testified or been deposed 37 times in state or federal court or arbitrations proceedings.
He has consulted and testified for the FINRA Department of Enforcement in a regulatory matter involving over $250 million of Auction Rate Securities transactions and consulted for the Kansas State Securities Commission. He is also an arbitrator for FINRA.
Finra Department of Enforcement | February 2012
Litigation involving a regulatory matter brought by the Finra Department of Enforcement against a Registered Representative working for a broker-dealer cash management desk and the sale of over $220 million in Auction Rate Securities (“ARS”). The case workup involved the analysis of: over 300 ARS Prospectuses; 64 ARS transactions (including detailed comparisons to alternative ARS available) for eight different client accounts; account asset allocations at the time of each transaction; contemporary ARS inventory from primary ARS dealers; trade tickets; commissions; new issues; and agency cross transactions. Additional work included the review of the broker-dealers compliance and supervisory policies and procedures and testimony.
Estate Litigation | April 2012
Litigation involving the alleged misallocation of part of a $50 million trust over a 55 year time period. Trial preparation included: analysis of trust records, asset allocation, allocation of trustee fees against principal and income; creation of damage model incorporating changing asset allocation, tax, trustee fee laws; written report and deposition.
Short Against the Box Litigation | August 2011
- Tax Attorney
- Damage Analyst
Litigation involving a $50 million legacy stock position that was hedged using a short against the box transaction in 1997 and the subsequent purchase of leveraged closed-end funds and financial preferred stocks. Trial preparation included: analysis of 74 different accounts over 14 years; graphical analysis of 10 primary account investment flows, documenting sources and uses of funds; analysis of hundreds of new issue prospectuses; and creation of complex “but-for” analyses modeling damages of actual account performance against that of the hedged stock position.
Life Insurance Claim Evaluation | July 2011
- Tax Attorney/Short Against the Box Expert
- Damage Analyst
- Product Expert
- Data Entry Team
Evaluation of nine different insurance contracts with $20 million face amount. Nine policies were bought and sold over a 10 year period and included multiple premium finance loans, pledged accounts, and Stranger Originated Life Insurance policies. Evaluation included: review of insurance applications, contracts, and prospectuses; loan documents; investments of sub-accounts; and creation of damage estimates.
Auction Rate Securities Concentration Litigation | March 2011
Litigation involved a public company with over $125 million in student loan Auction Rate Securities (“ARS”). Trial preparation included: analysis of client holdings and broker-dealer inventory; review of supervisory and compliance policies and procedures; and report.
CDO Litigation | August 2011
Litigation involving a $10 million CDO invested in sub-prime residential mortgage backed securities. Trial preparation included: analysis of underlying loan pool data; visualization of ratings changes of underlying loans; creation of damage estimates; review of broker-dealer supervisory and compliance policies and procedures.