Terence Healy represents clients in their most sensitive matters before the United States government. He is the Chair of the Securities Enforcement Practice and Co-Chair of the Private Funds Practice at the firm. Terence regularly defends public companies, hedge funds, private fund advisers, and individual officers and directors in matters against the Securities and Exchange Commission (SEC), Department of Justice (DOJ), Commodity Futures Trading Commission (CFTC), and other regulators. He has represented some of the leading figures in industry—including Tesla founder Elon Musk and Papa John’s founder John Schnatter, and Nikola founder Trevor Milton—in matters gaining national media attention. His practice focuses on three primary areas: White Collar and Securities Enforcement, Internal Investigations and Corporate Governance, and Complex Litigation.
White Collar and Securities Enforcement
Terence routinely represents financial institutions and individuals in both civil and criminal enforcement proceedings. He personally represented Tesla founder Elon Musk before the SEC in its “taking private” investigation and is currently defending Nikola founder Trevor Milton in parallel criminal and civil actions alleging securities and wire fraud in the Southern District of New York. Terence has successfully defended companies and individuals in formal investigations and litigated proceedings, often securing favorable resolutions without charges being brought—even after the issuance of a formal Wells notice or its equivalent. He has a detailed understanding of the challenges facing public companies and financial firms in a changing regulatory environment and has extensive experience in the areas of financial reporting and in issues affecting the private funds industry.
Prior to re-entering private practice, Terence was Senior Assistant Chief Litigation Counsel for the SEC Division of Enforcement. In that role, he oversaw SEC investigations and prosecuted violations of federal securities laws in cases related to financial fraud, insider trading, the Foreign Corrupt Practices Act (FCPA), structured products, and other issues. He also supervised a team of seven first-chair SEC trial lawyers. Prior to re-entering private practice, Terence was Senior Assistant Chief Litigation Counsel for the SEC Division of Enforcement. In that role, he oversaw SEC investigations and prosecuted violations of federal securities laws in cases related to financial fraud, insider trading, structured products, and other issues. He also supervised a team of seven first-chair SEC trial lawyers.
Securities Enforcement Docket named Terence to its “Enforcement 40” as one of the country’s top attorneys in the field.
Internal Investigations and Corporate Governance
Terence has led internal investigations on behalf of public companies, audit committees, special committees, private fund managers, family offices, and financial institutions. He has extensive experience in managing large investigative teams, securing and gathering relevant information, and leading clients through the challenges that flow from the discovery of institutional misconduct. He believes effective internal investigations should have a clearly defined scope with agreed to procedures, anticipated timeline, and budget. Terence counsels clients on issues such as fiduciary duties in conducting investigations, public disclosure and financial reporting obligations, and communicating with various outside interested parties.
For more than two decades, Terence has represented clients in complex disputes before trial and appellate courts throughout the country. He is a seasoned trial lawyer and has been lead counsel in numerous complex matters tried to verdict, including multidistrict proceedings. Some of his notable results include securing dismissal of claims against numerous officers and directors in securities class actions; obtaining summary dismissal of claims against a private fund manager and its principal following a two month trial of an SEC enforcement proceeding; securing a defense verdict for the lead defendant in a four month federal trial concerning a mass tort; securing a favorable verdict on all claims following a three month federal trial alleging financial fraud at a public company; and briefing and arguing a certified appeal to a state supreme court, leading to the dismissal of a $500 million claim against his client and the issuance of a precedential decision from a federal court of appeals which was later cited by the Supreme Court of United States. In each of these matters, Terence was the first-chair lead trial attorney.
Private Funds Practice
Terence is the co-head of the Private Funds Practice at the firm and has extensive experience counseling investment advisers and private fund managers in regulatory and enforcement matters affecting their firms. Our Private Funds Practice brings together subject matter experts in the areas of fund formation, compliance, tax, structuring, and securities. Our attorneys have more than 30 years of experience working with the asset management industry and help fund managers work through both the regulatory and business issues they face. The strength of our practice lies in our judgment and in a knowledge of the private funds industry gained over decades of experience.
Selected Prior Experience
Senior Assistant Chief Litigation Counsel, Division of Enforcement, US Securities and Exchange Commission, Washington, DC
Trial attorney, United States Department of Justice, Civil Division, Washington, DC
Highlighted Publications and Lectures
“Applying the Proportionality Standard Under Rule 26 Against the SEC,” New York Law Journal, January 25, 2018
“Understanding the Full Impact of ‘Kokesh’ on SEC Enforcement Proceedings,” New York Law Journal, November 2, 2017
“A Look at SEC’s Rules of Practice, A Year After Amendments,” Law360, September 26, 2017
"Conducting Effective Internal Investigations: A Checklist for In-House Counsel," Corporate Counsel, September 21, 2017
“Compliance, Risk & Enforcement Symposium- New York 2016,” Regulatory Compliance Association, November 2, 2016
"The Securities and Exchange Commission Prevails in the 2nd Circuit in Defending No-Admission Settlement Policy," Journal of Investment Compliance 15, no. 4 (2014): 41-43
"Cut to the Chase: Navigating Alternative Investments through the New Regulatory Era," SkyBridge Alternatives Conference, May 16, 2014
"Managing Third-Party Risk," Association of Corporate Counsel, Feb. 19, 2014
"In the Crosshairs: The Asset Management Industry," Outside Publication, Bloomberg BNA (Feb. 13, 2014)
"SEC Update 2014: What to Expect from the Regulators in the Coming Year," Bloomberg BNA 2014 Outlook on Securities, New York, Jan. 29, 2014
"The Year of the Whistleblower," Outside Publication, Forbes Employment Law Beat (Jan. 14, 2014)
"Bold and Unrelenting Enforcement from the SEC: A Six Month Review," Columbia CLS Blue Sky Blog, November 1, 2013
“SEC Not Backing Down in Fight Against Chinese Auditors," Corporate Counsel, February 6, 2013
U.S. Supreme Court
U.S. Court of Appeals for the District of Columbia Circuit
U.S. Court of Appeals for the Eleventh Circuit
U.S. District Court for the District of Arizona
U.S. District Court for the District of Columbia
U.S. District Court for the Eastern District of Wisconsin
U.S. District Court for the District of Maryland
Representation of Nikola founder Trevor Milton as trial counsel in parallel criminal and civil actions alleging wire fraud and securities fraud in the Southern District of New York
Representation of Tesla founder Elon Musk in SEC investigation into public statements concerning taking the company private
Representation of a global medical device manufacturer in DOJ investigation into alleged violations of the Anti-Kickback Statute
Representation of a large institutional broker in NYSE investigation into alleged manipulative options trading
Representation of the audit committee of a public company in an internal investigation into alleged dissipation of corporate assets
Representation of a major financial institution in a CFTC investigation into alleged manipulation of a benchmark financial index
Representation of a special committee of the board of directors of a public company in an internal investigation into material misstatements in the company's public filings
Representation of a private fund advisor and its principal in an SEC investigation into alleged offering fraud and misappropriation of investor funds
Representation of a large foreign bank in an internal investigation and multiple domestic and foreign regulatory investigations into alleged manipulative options trading across various exchanges
Representation of the audit committee of an insurance company in an internal investigation into alleged misuse and conversion of the company’s reserve base capital
Representation of a major audit firm in an SEC investigation into alleged aiding and abetting of an offering fraud involving municipal securities
Representation of the CFO of a public company in an SEC investigation alleging fraud in the company’s public statements and public filings
Representation of a public company in an SEC investigation into alleged financial fraud and fraud in its material public statements
Representation of an officer of a public company in a DOJ investigation into alleged anti-money laundering violations
Representation of an independent director of a public company in an SEC investigation into possible insider trading in advance of a merger
Representation of a public company in multiple FINRA investigations into possible manipulation and insider trading in advance of material public announcements
Representation of a registered investment advisor in an SEC investigation into an alleged pay-for-play scheme involving municipal pension funds
Representation of a registered investment advisor in SEC and private litigation alleging conversion of investor funds
Representation of a public company in an internal investigation into a "distort and short" scheme affecting the value of the company’s securities
Representation of a hedge fund and its adviser in an SEC investigation arising out of the Enforcement Division's Aberrational Performance Initiative
Representation of a large family office in an internal investigation into potential insider trading in the options markets
Representation of a major financial institution in an SEC enforcement proceeding related to the marketing and sale of a residential mortgage-backed securitization
Representation of a major financial institution in an SEC enforcement proceeding against the trustee of a collateralized debt obligation