by Gary Carleton, Carleton Law PLLC
FINRA Flashback – Tribute to Barry Goldsmith
Welcome to #finraFlashback! In typical Flashbacks, we look at securities enforcement cases and discuss what we can learn from them. Today’s Flashback is a special tribute to a special former colleague, Barry Goldsmith, who passed recently.
Barry had a remarkable 50-year legal career in both private practice and in the public sector. I had the great fortune of working with Barry in the SEC’s Division of Enforcement, and then again, ten years later, in NASD/FINRA’s Enforcement Department.
That first case we investigated and litigated at the SEC in 1986, along with a cadre of other attorneys, would help define our early careers. That case turned into a string of notorious insider trading cases against Dennis Levine, Ivan Boesky, Michael Milken, and others.
Those cases made the SEC’s work front-page news and raised the Commission’s stature as a can-do regulator. Indeed, in 1987, the New York Times ran an article about our investigative group entitled “SEC Sleuths: The Insider Trading Team; The Making of Government Good Guys.”
Barry joined the SEC’s Division of Enforcement as Senior Deputy Head of its Litigation Group just as the investigation into the first insider trader, Dennis Levine, began to materialize. Barry led the SEC’s investigative team and also collaborated with other senior Enforcement staffers.
I could tell at once that Barry was extremely bright and an outstanding lawyer. And as serious and consequential as these cases were, Barry managed to inject not only his legal insights but his sense of humor at all the right times. Barry was respectful of not only his legal team but also of opposing counsel. Barry kept an even keel throughout and managed an ever-growing number of attorneys assigned to work on the investigations.
In late 1989, after Michael Milken and Drexel Burnham Lambert settled their charges with the SEC, I left the Commission to join NASD/FINRA’s fledgling Anti-Fraud Department, the precursor to its Enforcement Department.
To my pleasant surprise, in 1996, NASD’s new CEO, Mary Schapiro named Barry to head NASD’s Enforcement Department. I was delighted to once again have the opportunity to work with Barry. One of the first cases that I worked on with Barry at NASD was Stratton Oakmont’s appeal of a stinging NASD Enforcement disciplinary action. We were stuck defending a hearing panel decision that got to the correct conclusion but with unusual reasoning.
I asked Barry for his advice on how to argue the matter on appeal. It was Barry’s idea that we simply focus on Stratton’s incredibly long and tortured disciplinary history. I followed Barry’s advice and created a chart to use at oral arguments for the appeal that just focused on the firm’s disciplinary history. Of course, Barry’s instincts were spot on, and as a result of the appeal, NASD increased the sanction to an expulsion of the firm.
I enjoyed working for and with Barry at NASD and stayed in touch after he left for private practice at Gibson Dunn & Crutcher. I know that my experiences with Barry were not unique and that many other attorneys likewise enjoyed working with and knowing Barry.
We will clearly miss him. May his memory be a blessing.
In Case You Missed It – You can find prior blogs on the FINRA investigative and disciplinary process and of #finraFlashbacks at www.carletonlaw.net and go to the Blog tab.
About Carleton Law PLLC
Getting a call from FINRA or SEC Enforcement telling you that your work as a securities broker is under investigation could be the worst day of your life. You have worked hard for years building your business. Now, with one wrongful allegation you can see it all swept away. But with expert counsel, it does not have to end that way.
For more than 30 years, Gary Carleton was the one conducting those investigations at FINRA and SEC and now his firm, Carleton Law PLLC, brings that savvy experience to bear to advocate for brokers and FINRA firms who find themselves in that dreaded position. Carleton Law focuses on the individual needs of each client to guide them through the maze of the investigative and disciplinary process.
Carleton Law PLLC | 2001 Massachusetts Avenue, NW, Washington DC 20036 info@carletonlaw.net
The information provided in this article does not, and is not intended to, constitute legal advice; instead, all information is for general informational purposes only. Readers of this article should contact their attorney to obtain advice with respect to any particular legal matter. No reader should act or refrain from acting on the basis of information contained herein without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this article does not create an attorney-client relationship between the reader or user and the article author or law firm.
Attorney Advertising – Gary Carleton, Principal of Carleton Law, is admitted to practice law in the State of New York and the District of Columbia. This article may be considered attorney advertising.
Contact Us
Carleton Law, PLLC
2001 Massachusetts AVE, NW
Suite 2D
Washington, DC 20036
(202) 744-6297
info@carletonlaw.net
Carleton Law, PLLC, 2001 Mas