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FinTech 2018


Speaker(s): Allen Brandt, Alma M. Angotti, Andras P. Teleki, Barbara A. Stettner, Bjorn J. Hall, Brian S. Trackman, Cathy Yoon, Daniel Alter, Daphna A. Waxman, Deborah Connor, Derek Newman, Dror Futter, Jeffrey S Davis, Jennifer G. Riegel, Jeremy Senderowicz, K. Susan Grafton, Lilya Tessler, Paul Stevens, Rochelle G Kauffman Plesset, Susan I. Gault-Brown
Recorded on: Aug. 13, 2018
PLI Program #: 220360

Alma Angotti is a Managing Director and Co-Head of the Global Investigations & Compliance practice. With over 25 years of regulatory practice, Ms. Angotti has held senior enforcement positions at the SEC, Treasury’s Financial Crimes Enforcement Network (FinCEN) and FINRA (Financial Industry Regulatory Authority). In these positions, she was responsible for conducting investigations involving securities fraud, insider trading, financial fraud, anti-money laundering (“AML”) and counter terrorist financing, market manipulation, investor and market protection, and other regulatory violations.  At FinCEN and FINRA, she designed and lead the AML enforcement programs.  She regularly worked with criminal prosecutors in a variety of jurisdictions and the U.S. Department of Justice to investigate and bring actions jointly.

Ms. Angotti has counselled her clients, large global financial institutions, multinational companies, smaller financial institutions, broker-dealers and Fintech companies, in a variety of projects, including gap analyses, compliance program reviews, risk assessments, remediation efforts, investigations and transaction reviews. Recently, she held interim senior compliance leadership positions at several global and regional financial institutions providing day-to-day management of their compliance programs and assisting them with implementing enhancements, often in the context of a regulatory or criminal enforcement action. 

She has trained and advised the financial services industry as well as other regulators and government officials worldwide on AML, sanctions, and combating the financing of terrorism (CFT) and other regulatory compliance issues.


András Teleki is the managing member of the Teleki AML and Cybersecurity Law Firm based in Washington, DC.  He also serves as the Chief Legal Officer and Head of Compliance for M3Sixty Administration and oversees internal and external firm legal and compliance matters.  András Teleki received his Juris Doctorate from Tulane Law School in 1998 and is admitted to practice in New York and the District of Columbia.   He is a frequent speaker on topics impacting the investment management industry. 

Prior to founding the Teleki AML and Cybersecurity Law Firm and joining M3Sixty, Mr. Teleki was a partner at the law firm of K&L Gates where he was a member of the Investment Management group from 2001 to 2015.  His practice focused on regulatory and compliance issues facing registered investment companies, including mutual funds and closed-end funds, broker-dealers, investment advisers, unregistered funds, variable insurance product issuers and distributors, and related service providers. He also advised insurance companies on variable insurance and other registered products and financial institutions on anti-money laundering, OFAC, cybersecurity, privacy, social media and financial technology issues. Mr. Teleki also has experience conducting internal investigations and working on regulatory enforcement matters with the SEC and FINRA.


Barbara Stettner is a member of A&O’s global Financial Services Regulatory practice and managing partner of the Washington, DC office. She represents banks, asset managers, broker-dealers, and other financial institutions on regulatory obligations in domestic and cross-border matters involving securities distributions and fundraising activities, including through crowdfunding platforms and over the blockchain, Fintech and virtual currency/ICO trading, lending and advisory platforms, and other regulatory matters under the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, and the Bank Secrecy Act. Previously, Barbara was at the SEC’s Division of Trading and Markets, as Special Counsel in Office of the Chief Counsel, Attorney-Advisor in the Office of Risk Management, and Senior Counsel in the Office of International Affairs. According to Chambers USA, Barbara receives accolades for the reasoned regulatory compliance advice she provides to her clients: “she is a ‘real out-of-the-box thinker’ and is ‘one of the best to get in that area to answer your questions.’”


Brian Trackman is the Attorney Lead for LabCFTC and is Counsel on FinTech and Innovation in the Office of General Counsel.  Mr. Trackman joined the Commission in 2013. He advises on a wide range of FinTech issues and is a senior member of the FinTech Interdivisional Working Group.  Representative projects at the CFTC include advising on security standards and system safeguards for key market infrastructure, business continuity and disaster recovery plans, automated trading, digital currency, and exchange traded products. 

Prior to joining the CFTC, Mr. Trackman worked at the Securities and Exchange Commission, where he focused on review of novel derivative securities products, market structure reform, and the oversight of alternative trading systems. 

Mr. Trackman previously worked on litigation related to the Y2K California energy crisis and was a clerk at the Federal Court of Claims.  Mr. Trackman holds a J.D. from Harvard Law School and graduated magna cum laude from Amherst College.


Bjorn is the General Counsel of Fundrise.

Prior to joining Fundrise, Bjorn spent over 8 years practicing securities and general corporate law, primarily at O'Melveny & Myers LLP and Venable LLP in Washington, DC, with short stopovers at the Securities and Exchange Commission and a Russian steel corporation.

Bjorn received his B.A. in Political Science from the University of North Dakota, and his J.D. from Georgetown University Law Center.


LILYA TESSLER is a partner and the New York head of Sidley’s FinTech and Blockchain group. She focuses her practice on representing digital asset trading platforms, blockchain technology companies, U.S. and non-U.S. broker-dealers, financial services firms and cryptocurrency funds.

Lilya advises technology companies on blockchain token offerings, including so-called ICOs. She also counsels financial institutions and digital asset exchanges with day-to-day securities issues, private placement agent requirements, custody rule requirements, cross-border regulatory issues, money services business registration requirements, as well as FINRA and SEC regulatory inquiries. She advises several U.S. and non-U.S. FinTech companies, including robo-advisors and high-frequency trading firms in evaluating the broker-dealer and investment advisor registration requirements.

Lilya works with transactional lawyers on structuring deals involving financial services and technology companies, digital asset exchanges and blockchain token offerings. She regularly assists both financial services firms and their vendors in negotiating U.S. and cross-border technology agreements for all types of services and considering the U.S. securities laws and broker-dealer regulatory issues associated with such technologies. Lilya has testified before the New Jersey Assembly Science, Innovation and Technology Committee on the economic development opportunities presented by blockchain technology innovation.

Lilya is a frequent speaker and writer on various topics in FinTech, with a particular focus on distributed ledger technology, blockchain tokens and digital asset trading platforms.

Lilya is a certified public accountant, FINRA dispute resolution arbitrator and previously held FINRA Series 7 and 24 licenses.

Prior to joining Sidley, Lilya was co-head of the FinTech and Blockchain Group and a leader of the broker-dealer practice at another global law firm.

Experience

Transactions Experience

  • Represented Coinbase in acquisition of Keystone Capital Corp., Venovate Marketplace, Inc. and Digital Wealth LLC, an SEC-registered broker-dealer, alternative trading system and registered investment advisor*
  • Represented Coinbase in acquisition of Paradex, a blockchain token wallet-to-wallet relayer platform*
  • Represented Polychain Capital in certain aspects of its blockchain token purchases*
  • Represented block.one in the sale of blockchain tokens for EOS*
  • Represented Citizens Financial Group in its acquisition of Western Reserve Partners, a merger and acquisition advisory firm*
  • Represented Mosaic Research in its blockchain token launch for MZX*
  • Represented MetaX in its blockchain token launch for Adchain*
  • Represented numerous blockchain technology companies in U.S. and non-U.S. token offerings*

    Regulatory Experience

  • Counseled Coinbase on various legal questions concerning blockchain tokens and broker-dealer rules*
  • Represented block.one in various corporate, intellectual property and regulatory issues*
  • Represented Venture Capital Working Group with respect to proposed SEC safe harbor for token offerings*
  • Advised on formation of broker-dealers and registration of alternative trading systems to transact or custody digital assets*
  • Represented financial institutions with day-to-day securities issues, private placement agent requirements, Rule 15a-6 questions and interpretation of the M&A Broker no-action letter, as well as policies and procedures to implement the advice*
  • Negotiated trading and custody agreements for broker-dealers, banks and other financial services companies*
  • Advised retail broker-dealers and private funds on the requirements of Regulation R, Regulation U and Regulation T*
  • Represented the Argon Group on various regulatory issues relating to blockchain token sales*
  • Represented a U.S. industry trade group with respect to a comment letter to shorten the settlement cycle in the United States to T+2*
  • Advised clients on FINRA and SEC regulatory violations and drafted self-reporting disclosure statements for retail and institutional broker-dealers*
  • Represented The Financial Services Roundtable with respect to a comment letter on the consolidated audit trail (CAT) plan and proposed U.S. Treasury regulations*

*The above matters were handled by Lilya prior to joining Sidley.

Publications

  • Co-author, “US Regulators Use Carrots and Sticks For ICOs and Crypto Investments,” Block Tribune, June 8, 2018
  • Co-author, "What Is a 'Recommendation' Under the Department of Labor's Fiduciary Rule? Lessons from FINRA," Journal of Taxation and Regulation of Financial Institutions, Vol. 31, No. 1, Fall 2017

    Events

  • Speaker, “BlockChain and Cryptocurrencies 101,” Practising Law Institute (PLI) FinTech 2018 (New York, August 13, 2018)
  • Speaker, “Tokens Regulation in the US,” Token Summit III (New York, May 17, 2018)
  • Speaker, “Status of the Token Regulation in the US,” Crypto42 Token Investment Summit 2018 (Vienna, April 16, 2018)
  • Speaker, “Tech Talk: Structuring Legally Compliant Token Sales,” The Samuel & Ronnie Heyman Center on Corporate Governance and the Cardozo Tech Talk Series (New York, November 21, 2017)
  • Speaker, “Cryptocurrency, Characterizing Blockchain Tokens & Initial Coin Offerings (ICOs) — a Global Perspective,” Osgoode Hall Law School Professional Development Blockchains, Smart Contracts and the Law Conference (Toronto, November 15, 2017)
  • Speaker, “Demystifying ICOs,” #FS17: Rethinking Financial Services (Really) Conference (San Francisco, November 1, 2017)

Admissions & Certifications

  • New Jersey
  • New York

    Education

  • New York Law School, J.D., 2009
  • Babson College, M.S., 2005
  • Babson College, B.A., 2005


Mr. Newman serves as Senior Regulatory Counsel at Motley Fool Wealth Management, LLC.   He advises the company and its advisory affiliates on a variety of regulatory, corporate and business matters, including compliance with U.S. laws and regulations governing the operations of registered investment companies and investment advisers.

Before joining Fool Wealth, Mr. Newman served as Associate General Counsel with a global asset management firm, followed by an assignment in the SEC’s Division of Investment Management. Mr. Newman spent most of his career as a corporate and securities associate in the Washington, D.C. and Hong Kong offices of a prominent U.S. financial services law firm.


Ms. Jennifer Riegel is a special counsel in the Office of Small Business Policy in the Division of Corporation Finance of the U.S. Securities and Exchange Commission.  The office assists companies seeking to raise capital through exempt or smaller registered offerings, and participates in and reviews SEC rulemaking and other actions that may affect small businesses.

Previously, Ms. Riegel served as a senior special counsel to the director of the Division of Corporation Finance and special counsel in the Office of Health Care and Insurance.  Prior to joining the SEC, Ms. Riegel practiced corporate and securities law at the Palo Alto office of Cooley LLP. 

She received her law degree, summa cum laude, from Santa Clara University School of Law and her B.A. in political science, cum laude, from Boston University.


Susan Grafton leads Dechert’s Broker-Dealer, Securities Trading and Markets practice and co-leads its FinTech practice. She is consistently ranked nationally by Chambers USA in the Broker-Dealer (Compliance) and Broker-Dealer (Enforcement) categories. Among other comments, clients note her “problem-solving orientation. I find her to be very practical and she can work with us on getting to a positive resolution. She always has her client's goals in mind.” (Chambers USA 2017). Market observers call her “an excellent regulatory attorney” and note that “Susan’s work as always been very impressive.” (Chambers USA 2018). They also note that she is “very well connected in the industry, and is able to get the SEC and FINRA to be more responsive” (Chambers USA 2016). Clients also describe her as “a go-to attorney…especially in Regulation M issues and distribution type questions, [where] she's very knowledgeable” (Chambers USA 2015).

Ms. Grafton counsels a wide range of broker-dealers, including alternative trading systems, on all aspects of their business, including registration and changes in control; sales practices, including proposed Regulation Best Interest; trading and execution issues, including compliance with best execution, trade and order reporting, and Regulation NMS and SHO requirements; and Regulation M and FINRA’s corporate finance rules. Her practice also includes representing investment avisers, including hedge fund managers, on a variety of issues, including broker-dealer status issues and solutions to avoiding broker-dealer registration, the use of expert networks, handling material non-public information, and compliance with Rule 105 of Regulation M. She advises buy-side and sell-side clients on soft dollar issues and intersection between Section 28(e) and MiFID II.

In addition, Ms. Grafton frequently represents clients before the SEC and FINRA in connection with regulatory examinations and enforcement investigations pertaining to a wide range of issues.

Ms. Grafton has a unique combination of regulatory, in-house and law firm experience. She began her career with the SEC’s Division of Trading and Markets, and subsequently served as a vice president and associate general counsel of Goldman Sachs & Co. where she advised on a variety of strategic, regulatory compliance and operational issues related to the firm’s institutional equities sales and trading businesses.


Dror Futter focuses his practice on startup and blockchain companies and their investors, and has worked with a wide range of technology companies. His fifteen years’ experience as in-house counsel included positions with Vidyo, Inc., a venture-backed videoconferencing company, and New Venture Partners, a venture fund focused on corporate spinouts. Prior to that, Mr. Futter was Counsel to the CIO of Lucent Technologies, as well as supporting parts of its sourcing organization.

Mr. Futter’s practice has three main focus areas:

Venture Finance/Corporate 
Mr. Futter has represented companies and venture funds in numerous equity and debt financing rounds, from early “friends and family” and Seed rounds to later-stage mezzanine financings, and has been on both sides of the table in these transactions. On the corporate side, he routinely handles corporate formations, employee equity plans and mergers and acquisitions. Mr. Futter has also been involved in over 40 corporate spinouts and understands the unique concerns of corporate venture investors.

Blockchain and Cryptocurrencies 
Mr. Futter advises clients with respect to legal developments in the rapidly developing blockchain and cryptocurrency spaces.   He has advised on ICO’s and has worked with consortia considering the issues involved in using permissioned blockchains to support supply chain record keeping.

Transactional IT & IP
Mr. Futter represents clients in a broad range of transactions, including: software licenses, SaaS Agreements, outsourcing agreements, development agreements, website terms and conditions, patent licenses, direct and indirect channel distribution agreements, services agreements, manufacturing agreements, and other supply chain agreements.

Mr. Futter serves on the Model Forms Drafting Group of the National Venture Capital Association, the legal advisory board of the Angel Capital Association and Legal Working Group of the Wall Street Blockchain Alliance. He is also a frequent speaker and writer on venture and blockchain related topics.  In addition, Mr. Futter is an Entrepreneur in Residence at the Stevens Venture Center of the Stevens Institute of Technology and a Mentor at Princeton University’s Keller Center.

Mr. Futter is a 1986 magna cum laude graduate of Princeton University and 1989 graduate of Columbia University School of Law. He also earned an Executive MBA in 1999 from the American Electronics Association Executive Institute of Stanford University.