Joshua M. Newville

Joshua M. Newville is a partner in the Litigation Department in New York and a member of Proskauer's White Collar Defense & Investigations Group and the Asset Management Litigation team.

Josh handles securities litigation, enforcement and regulatory matters, representing corporations and senior executives in civil and criminal investigations. In addition, Josh advises registered investment advisers and private fund managers on regulatory compliance, SEC exams and related risks.

Firm/Organization: Proskauer Rose LLP

Blogs: Blockchain and the Law, Corporate Defense and Disputes, Minding Your Business, New Media and Technology Law Blog, The Capital Commitment

Latest Articles

The Capital Commitment

SEC Announces New Approach to Disqualification Waivers

By Samuel J. Waldon, Karen J. Garnett, Joshua M. Newville & Robert E. Plaze on July 8, 2019

On July 3, 2019, SEC Chairman Jay Clayton issued a “Statement Regarding Offers of Settlement” (the “Statement”), announcing important changes to how the SEC will consider future requests for waivers from disqualifications in settlements. The Statement may have been prompted by the Bad Actor Disqualification Act of 2019 recently proposed by Representative Maxine Waters. Regardless of the impetus, the Statement should provide settling parties with greater certainty regarding the waiver process. Importantly, the…

The Capital Commitment

SEC Fines Fund Manager $5 Million Over Undervaluation of Assets

By Joshua M. Newville & Brian Hooven on June 25, 2019

A recent action where the SEC focused on the presumably conservative undervaluation of assets suggests that it is more than willing to use valuation as a hook to deter “smoothing” of returns. As we previously noted, while the SEC consistently announces that valuation is a “key area of focus,” it is uncommon for regulators to second guess valuation determinations in the absence of other potential violations. However, failure to adhere to stated valuation policies/procedures…

The Capital Commitment

DC Circuit Opinion Reaffirms Fiduciary and Disclosure Obligations of Advisers While Rejecting SEC Finding of “Willful” Violations

By Joshua M. Newville, Samuel J. Waldon, Anthony Drenzek & Ariella Muller on May 13, 2019

The DC Circuit recently released an opinion addressing the SEC’s administrative findings against registered investment adviser The Robare Group (TRG) for failure to disclose alleged conflicts of interest. Although the court affirmed the SEC’s finding of a violation of Section 206(2) of the Advisers Act, it held that Commission could not find willful violations under Section 207 based on the same negligent conduct. The court’s analysis of 206(2) of the Advisers Act, the key negligence-based…

The Capital Commitment

Fraud Claims Against Startup Founder Involving Secondary Market Sales Demonstrate SEC Focus on Privately-Held Companies

By Joshua M. Newville & Brian Hooven on April 11, 2019

Last week the SEC announced a settlement of fraud claims against the founder of Jumio, Inc, a private mobile payments company, for misstating the company’s financial results and using those financials to sell his company shares on the secondary market. This case is a reminder that privately negotiated securities transactions and private, VC-funded companies are not exempt from regulatory scrutiny. As we observed in a number of settlements last year, the SEC will pursue…

The Capital Commitment

The Top Ten Regulatory and Litigation Risks for Private Funds in 2019

By Timothy W. Mungovan, Samuel J. Waldon, Joshua M. Newville, Michael R. Hackett, Anthony Drenzek, William Dalsen, Brian Hooven, Alexandra V. Bargoot, Lucy Wolf & Hena M. Vora on February 20, 2019

An increasingly sophisticated and active OCIE division, innovative market disruptors, a maturing credit cycle, and a philosophical change in how the private fund industry views and utilizes litigation are likely to lead to increased regulatory scrutiny and litigation risk for advisers (and their funds) in 2019. With that backdrop, we are pleased to present our Top Ten Regulatory and Litigation Risks for Private Funds in 2019.…

The Capital Commitment

Valuation of Illiquid Securities as a Focus of Recent Enforcement Actions

By Joshua M. Newville & Brian Hooven on November 26, 2018

While the SEC consistently announces that valuation is a “key area of focus,” it is uncommon for regulators to “second guess” valuation determinations in the absence of other potential violations. However, recent actions would suggest that the SEC is particularly interested in the valuations and methodologies behind illiquid securities. As we have noted here before, although valuation can be more art than science, there are heightened regulatory risks in the following areas around valuation:…

New Media and Technology Law Blog

WSJ Article on Geolocation Data Highlights Risks for Fund Managers

By Joshua M. Newville & Jeffrey Neuburger on November 7, 2018

Last week the WSJ published an article detailing how companies are monetizing smartphone location data by selling it to hedge fund clients. The data vendor featured in the WSJ article obtains geolocation data from about 1,000 apps that fund managers use to predict trends involving public companies. However, as we’ve noted, the use of alternative data collection for investment research purposes may give rise to a host of potential issues under relevant laws. Read…

The Capital Commitment

WSJ Article on Geolocation Data Highlights Risks for Fund Managers

By Joshua M. Newville & Jeffrey Neuburger on November 6, 2018

On Friday, the WSJ published an article detailing how companies are monetizing smartphone location data by selling it to hedge fund clients. The data vendor featured in the WSJ article obtains geolocation data from about 1,000 apps that fund managers use to predict trends involving public companies. However, as we’ve noted, the use of alternative data collection for investment research purposes may give rise to a host of potential issues under relevant laws.…

The Capital Commitment

Bharara Task Force on Insider Trading

By Joshua M. Newville & Samuel J. Waldon on October 15, 2018

Former SDNY U.S. Attorney Preet Bharara and SEC Commissioner Jackson recently announced, via NY Times op-ed, the creation of the Bharara Task Force on Insider Trading. Based on the premise that U.S. insider trading laws are unclear and hopelessly out of date, the task force intends to propose new insider trading reforms to help clarify the laws and protect American investors. Jackson and Bharara recognize that individuals facing liability should have more clarity about…

The Capital Commitment

SEC Extends Registration Requirements for Investment Companies and Broker Dealers to ICOs and other Digital Assets

By Joshua M. Newville, Samuel J. Waldon, Robert E. Plaze & Lucy Wolf on September 25, 2018

Fund managers take note – after over a year of warning, this month the SEC announced a pair of settlement orders with respect to registration requirements for a fund and broker dealer operating in the crypto and digital assets space. It was the agency’s first ever enforcement actions applying the investment company and broker-dealer registration provisions of the securities laws to businesses involved in digital securities. As we’ve written on Proskauer’s Blockchain and the …

Joshua M. Newville

SEC Announces New Approach to Disqualification Waivers

SEC Fines Fund Manager $5 Million Over Undervaluation of Assets

DC Circuit Opinion Reaffirms Fiduciary and Disclosure Obligations of Advisers While Rejecting SEC Finding of “Willful” Violations

Fraud Claims Against Startup Founder Involving Secondary Market Sales Demonstrate SEC Focus on Privately-Held Companies

The Top Ten Regulatory and Litigation Risks for Private Funds in 2019

Valuation of Illiquid Securities as a Focus of Recent Enforcement Actions

WSJ Article on Geolocation Data Highlights Risks for Fund Managers

WSJ Article on Geolocation Data Highlights Risks for Fund Managers

Bharara Task Force on Insider Trading

SEC Extends Registration Requirements for Investment Companies and Broker Dealers to ICOs and other Digital Assets

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