Marc E. Elovitz

Firm/Organization: Schulte Roth & Zabel LLP

Latest Articles

FinCEN Assesses Civil Money Penalty Against P2P Currency Exchanger for BSA Violations

By Donald J. Mosher, Kara A. Kuchar, Betty Santangelo, Marc E. Elovitz, Stephanie R. Breslow, Malka Levitin & Schulte Roth & Zabel

April 26, 2019

On April 18, 2019, the Financial Crimes Enforcement Network of the U.S. Department of the Treasury announced the assessment of a civil money penalty against Eric Powers for willfully violating the registration, program and reporting requirements of the Bank Secrecy Act and its implementing regulations. Between December 2012 and September 2014, Mr. Powers acted as a peer-to-peer (“P2P”) currency exchanger of convertible virtual currency, conducting activities that qualified as money transmission, as defined in 31…

Regulatory & Compliance Update

SEC Publishes First-Ever No-Action Letter for a Cryptocurrency Enterprise and a Framework for when a Cryptocurrency Is a Security

By Charles J. Clark, Stephanie R. Breslow, Marc E. Elovitz, Donald J. Mosher, Howard Schiffman, Melissa G.R. Goldstein & Schulte Roth & Zabel

April 10, 2019

On April 3, 2019, the U.S. Securities and Exchange Commission published a framework aimed at assisting in determining whether a digital asset is a security. Alongside the Framework, the SEC also published a no-action letter for TurnKey Jet, Inc., the first ever no-action letter for a digital asset enterprise. This is an important development for any parties interested in developing, selling or investing in digital assets, as it is the most robust analysis yet published…

Regulatory & Compliance Update

SEC Charges Fund Manager for Improper Cross Trades

By Marc E. Elovitz, Craig S. Warkol, Akshay Ramanan & Schulte Roth & Zabel

April 8, 2019

On March 15, 2019, the U.S. Securities and Exchange Commission charged a private fund manager and its former chief operating officer with manipulating the price of an asset sold by one client to another. The SEC’s orders charge Talimco LLC and its former Chief Operating Officer Grant Rogers with breaching their fiduciary duties in violation of the anti‑fraud provisions of the Investment Advisers Act of 1940. This action exemplifies the SEC’s continued focus on cross…

Regulatory & Compliance Update

SEC Charges Hedge Fund Manager with Short-and-Distort Scheme

By Craig S. Warkol & Marc E. Elovitz

September 19, 2018

On Sept. 12, 2018, the U.S. Securities and Exchange Commission charged the principal of a hedge fund manager and the hedge fund manager itself with illegally profiting from a scheme to drive down the price of Ligand Pharmaceuticals Inc., generating approximately $1.3 million in illegal profits. The SEC’s complaint charges that Gregory Lemelson and Massachusetts-based Lemelson Capital Management LLC issued false information about Ligand after Lemelson took a short position in Ligand on behalf of…

Regulatory & Compliance Update

OCIE Best Execution Risk Alert: Guidance and Lessons for Private Fund Managers

By Bryan Daly & Marc E. Elovitz

July 25, 2018

On July 11, 2018, the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (“OCIE”) issued a Risk Alert focusing on the most common deficiencies relating to best execution found by the SEC staff in recent examinations of investment advisers. The Risk Alert provides a snapshot of OCIE’s expectations regarding a fund manager’s best execution policies and procedures. Click here to read more about how OCIE’s recent Risk Alert will affect private fund managers.…

Regulatory & Compliance Update

Marc Elovitz and Joseph Smith Discuss Managing Conflicts in Fund Formation with Private Funds Management

By Marc E. Elovitz & Joseph Smith

May 5, 2017

In an interview with Private Funds Management, partners Marc Elovitz and Joseph Smith discuss regulator views on conflicts of interest and how to best deal with these issues as the fund formation climate becomes more complex. Marc and Joe also share their insights on how conflicts of interests are viewed by the SEC within the private equity space and how they are best dealt with in the industry. Click here to read the interview.…

Regulatory & Compliance Update

New Form ADV: The Impact on Private Fund Advisers

By Marc E. Elovitz, Bryan Daly & Brad L. Caswell

September 2, 2016

On Aug. 25, 2016, the U.S. Securities and Exchange Commission adopted a final rule that amends Form ADV — the filing that investment advisers registered with the SEC use to apply for and maintain their registration and that exempt reporting advisers utilize to claim and maintain their registration exemption. The SEC also amended its books and records rule to require more documentation with respect to performance reporting records. While these amendments will go into technical…

Regulatory & Compliance Update

Complying on Pay-to-Play: Tips for CCOs

By Marc E. Elovitz

May 30, 2016

As we move deeper into another election season, investment advisers should consider refreshing their efforts to comply effectively with the Securities and Exchange Commission’s rule on their political contributions — known as the pay-to-play rule. Although it’s more than five years old, Rule 206(4)-5 has not been easily integrated into many advisers’ compliance programs. If your firm allows its covered persons to make political contributions, there is not one simple step to avoid triggering Rule…

Regulatory & Compliance Update

Rule 105 Update: New Round of Enforcement Highlights SEC Approach on Short-Selling Violations

By Charles J. Clark, Bryan Daly, Harry S. Davis, Marc E. Elovitz, Eleazer Klein & David K. Momborquette

October 26, 2015

The Enforcement Division of the U.S. Securities and Exchange Commission (“SEC”) continued its “Rule 105 initiative” this year, culminating in settlements with six firms that total more than $2.5 million in monetary sanctions, in addition to other sanctions. These cases highlight important components of the SEC’s approach to Rule 105 enforcement. Fund managers should review their policies with regard to Rule 105, stress test the actual procedures that support those policies, and redouble their surveillance…

Regulatory & Compliance Update

Securities, Futures Regulators Increase Scrutiny, Expectations on Cybersecurity

By Bryan Daly, Marc E. Elovitz, Robert R. Kiesel, Holly H. Weiss, Jacob Preiserowicz & Michael L. Yaeger

October 23, 2015

Financial regulators are emphasizing the risk poor cybersecurity poses to market integrity and financial stability, and elaborating on policies and controls they expect the firms they oversee to have in place. Investment managers’ responsibility for cybersecurity has grown like compound returns. The SEC’s Office of Compliance Inspections and Examinations disclosed that its examination staff would be testing investment advisers to assess cybersecurity procedures and controls, and the National Futures Association proposed an interpretive notice expressly…

Marc E. Elovitz

FinCEN Assesses Civil Money Penalty Against P2P Currency Exchanger for BSA Violations

SEC Publishes First-Ever No-Action Letter for a Cryptocurrency Enterprise and a Framework for when a Cryptocurrency Is a Security

SEC Charges Fund Manager for Improper Cross Trades

SEC Charges Hedge Fund Manager with Short-and-Distort Scheme

OCIE Best Execution Risk Alert: Guidance and Lessons for Private Fund Managers

Marc Elovitz and Joseph Smith Discuss Managing Conflicts in Fund Formation with Private Funds Management

New Form ADV: The Impact on Private Fund Advisers

Complying on Pay-to-Play: Tips for CCOs

Rule 105 Update: New Round of Enforcement Highlights SEC Approach on Short-Selling Violations

Securities, Futures Regulators Increase Scrutiny, Expectations on Cybersecurity

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