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Mr. Despo is a shareholder in the Firm’s Financial Services Group. He focuses his practice on complex business litigation, internal investigations, governmental regulatory investigations, and white collar crime including securities actions, derivative actions, class action defense, antitrust, unfair competition, broker-dealer arbitrations, business disputes and professional malpractice. He appears before the U.S. Securities and Exchange Commission and securities regulatory bodies, representing individuals and organizations. Mr. Despo formerly served as enforcement counsel for the American Stock Exchange. He also has extensive experience representing high-tech companies. Mr. Despo appears pro hac vice in numerous state and federal courts throughout the United States. Legal Experience LeClairRyan, Newark, New Jersey, December 2007-Present Seiden Wayne, Newark, New Jersey, 1991-2007 (merged with LeClairRyan) Cassidy Despo & Foss , 1981-1991 American Stock Exchange, Inc. 1978-1981Education Georgetown University, LL.M, 1978 Vermont Law School, J.D., 1976 Michigan State University, B.A., Humanities, 1972Extended Information Representative Matters Intergroup Corp. v. Equinox Business Credit Corp. Defended Equinox, a public company specializing in asset base financing, and its subsidiary, Equifin, Inc., in a New Jersey Federal District Court matter alleging violations of federal and state securities laws, New Jersey state RICO violations and other claims. Intergroup was an investor in Equifin and contended that the company and its CEO had made material misrepresentations in connection with the placement of certain promissory notes. The Court refused to issue a preliminary injunction or appoint a receiver. Subsequently, the Court dismissed the entire complaint for failure to state a cause of action.Seitel, Inc. Securities Class Action Represented the Chairman of the Board of Directors of Seitel, Inc. in a federal securities law class action brought by shareholders in the U.S. District Court for the Northern District of Texas. Seitel, a NYSE listed company, primarily develops seismic oil and gas information, which is sold to other companies. The shareholders contended that Seitel had issued false financial statements by reporting income prior to the income being earned. The class action was subsequently settled for $5 million.Unapix Class Securities Action After Unapix, a public company, filed for bankruptcy and was liquidated, a shareholder class action was brought in the U.S. District Court for the Southern District of Florida against a former officer and a former director. Represented the former director in the class action alleging that the defendants issued false press releases and financial statements which inflated the company’s primary asset a film library. The class action complaint was dismissed by the Court. After the plaintiffs appealed, the case was settled for less than $20,000.Dean Witter, Inc. Represented a former branch office manager of E.F. Hutton, who was sued by E.F. Hutton and Shearson Lehman Brothers, Inc. The branch office manager and 24 brokers left E.F. Hutton and opened an office for Dean Witter. Successfully argued that the Court should rescind the temporary restraining order against Dean Witter and the brokers from conducting their business. The case was subsequently dismissed and made part of a national arbitration before the NASD.Freeman Securities, Inc. Represented Freeman, a securities broker-dealer, in a Securities and Exchange Commission national enforcement action involving the practices of dealers that distributed bonds issued by certain government sponsored enterprises. Freeman was a distributor for bonds issued by the Federal Home Loan Mortgage Corporation and Federal Farm Credit Banks Funding Corporation. The SEC enforcement action was settled by Freeman with a censure and small fine.First Montauk Securities Corp. Represent First Montauk as a defendant in a federal court action alleging that one of its former registered representatives sold to investors certain unregistered securities, which were a part of a Ponzi scheme orchestrated by the now-defunct Bennett Funding Corp. The case is aligned for pretrial purposes with a class pending in the U.S. District Court for the Southern District of New York.In RE Mutual Funds Investment Litigation Represent a former officer of a subsidiary of Allianz Dresdner who is accused of arranging the transmittal of material inside information and facilitating the improper timing transactions in mutual funds by Canary Partners. This class action case is pending in the U.S. District Court for the District of Maryland.Oakwood Counselors, Inc. Represented the firm’s Chief Financial Officer in the Securities and Exchange Commission’s first soft dollar enforcement action. The CFO was not named in the action. The company was fined $400,000, censored and agreed to be enjoined from further violations of federal securities laws.Affinity Federal Credit Union Represented a wholly owned subsidiary of AFCU, New Jersey’s largest credit union, in a partnership action in which the adverse party sought damages of over $2.5 million. After a four week trial, the court issued a no-cause decision in favor of AFCU subsidiary.Advantage Sales & Marketing, LLC Represented ASM, which is the world’s largest consumer products marketing organization with over $58 billion in commission sales, in an action in the U.S. District Court for the District of Northern California. The plaintiff, who charged ASM with breach of contract and federal anti-trust violations, sought over $40 million in damages. The Court refused to issue temporary restraints against ASM and subsequently dismissed all the anti-trust claims.Ranbaxy Pharmaceuticals, Inc. Represent Ranbaxy in a products liability suit pending in the U.S. District Court for the Eastern District of Texas claiming that Ranbaxy’s prescription drug, Ceplifaxn, caused the death of the decedent.NASD Arbitrations Represented numerous brokers and registered personnel in NASD Arbitrations.Foreign Corrupt Practices Act Represent several individuals in government investigations and/or court actions involving violations of FCPA.Real Estate Construction/Finance Represented a large, New Jersey based residential home developer which had transferred a number of development projects to a financial institution in satisfaction of $36 million debt by a deed held in lieu of foreclosure agreement. Litigation subsequently evolved in which the institution restituted the debt. The litigation was resolved by the institution rescinding its debt reinstatement and paying damages to the developer. The litigation also involved towns which had called in development completion bonds issued by an insurance company and a legal malpractice claim. The suit was resolved in favor of the residential developer.Speaking EngagementsMr. Despo has spoken on developments in securities laws at numerous bar association meetings.Classes and Seminars Taught Adjunct Professor of Law. |
