“With his extensive expertise in securities trading, valuation, and causation, Drew is a robust addition to our firm’s Securities team,” said Brattle Interim President & Principal David J. Hutchings. “His testifying experience and ability to help parties understand risk in complex portfolios involving options will be a major asset to Brattle’s clients.”

With more than 15 years of litigation consulting experience at top consultancies, Dr. Roper has served as a testifying expert in several high-profile commercial litigation matters, including as a class action certification expert. He has consulted on matters involving options trading, claims relating to risk management, fixed and variable rate annuities, and more.

Dr. Roper’s consulting experience is supported by a strong background in academia. He has held research and teaching positions focused on corporate finance at the Stanford Law School, the University of Wisconsin-Madison, and Duke University’s Sanford School of Public Policy. His work has been published in several leading economic and financial journals.

“I look forward to continuing to build the Brattle brand in securities litigation,” said Dr. Roper. “With the deep bench of expertise already in place and opportunities to invest going forward, Brattle should be on the top of the short list for clients looking for experienced securities experts that use innovative approaches.”

Before joining Brattle, Dr. Roper founded his own litigation consulting firm Catalyst Economic Consulting, and gained prior experience as an Executive Vice President and a Vice President, respectively, at two global economics consultancies.

To learn more about Dr. Roper, please see his full bio.

The post Financial Economist Andrew Roper Joins The Brattle Group as Principal appeared first on Brattle.

Cryptocurrency tracing – which requires tracing blockchain activity and the internal transactions of crypto businesses – is essential to support creditor asset recovery efforts and clawbacks in cryptocurrency platform bankruptcies such as the ongoing Celsius saga. Mr. Hinton details how tracing methods can differ depending on whether crypto is held on account-based or unspent transaction output (UXTO)-based blockchains, and examines the potential recovery avenues for investors in Celsius’s Custody and Borrow accounts. Such efforts will likely be a test case for investors considering similar actions in other crypto business bankruptcies, including those of FTX, Voyager Digital, and Genesis.

The full article, “How Celsius Customers May Use Tracing to Recover Deposits,” is available below (subscription required).

The post Cryptocurrency Tracing Goes off the Chain: Principal Paul Hinton Discusses How Tracing Crypto Currency Still Requires Traditional Methods in Recent <i>Law360</i> Article appeared first on Brattle.

In a recent article for Law360, Brattle Principal Dr. Christine Polek and Senior Associate Dr. Shastri Sandy explore how the use of AI decision models can cause disparate impact in areas such as housing, employment, credit, and healthcare – and, in turn, violate relevant laws and protections. They discuss some of the red flags regulators and consumer advocacy groups have raised about algorithms’ potential to produce discriminatory results, and provide an overview of statistical, economic, and qualitative tools that can be used to evaluate and address AI-induced disparate impact.

The full article, “Don’t Assume AI is Smart Enough to Avoid Unintended Bias,” is available below.

The post Brattle Consultants Discuss AI’s Potential to Cause Disparate Impact in Housing, Employment, Credit and Lending Decisions in Recent <i>Law360</i> Article appeared first on Brattle.

The winners of the 2022 Brattle Group Prize in Corporate Finance are:

First Prize, $25,000: Andreas Fuster, Paul Goldsmith-Pinkham, Tarun Ramadorai, and Ansgar Walther
Predictably Unequal? The Effects of Machine Learning on Credit Markets
The Journal of Finance, February 2022

Distinguished Paper, $10,000: Asaf Bernstein
Negative Home Equity and Household Labor Supply
The Journal of Finance, December 2021

Distinguished Paper, $10,000: Isaac Hacamo and Kristoph Kleiner
Forced Entrepreneurs
The Journal of Finance, February 2022

The Brattle Group has funded this annual award for more than 20 years. These prizes are presented at the AFA’s annual meeting, and this year’s awards were announced at the AFA’s Annual Meeting 2023, which took place January 6–8 in New Orleans, LA. All papers published in issues of The Journal of Finance from the first five issues of the given year, and December of the previous year, are eligible. We congratulate the winners on their achievements!

View a complete list of past winners

More about the AFA

The post American Finance Association Announces 2022 Recipients of The Brattle Group Prizes in Corporate Finance appeared first on Brattle.

Senior Associate Dr. Nguyet Nguyen compares informed trading in a fair-access dark venue with  restricted-access dark venues in a recent article published in The Quarterly Journal of Finance. Dr. Nguyen found robust evidence of informed trading taking place in the fair-access dark venue, but not in other dark venues.

The full article, “Informed Trading in Dark Pools: Fair-Access Dark Venue vs. Restricted-Access Dark Venues,” is available for download below.

The post Informed Trading in Dark Venues: Dr. Nguyet Nguyen Discusses in a Recent Article in <i>The Quarterly Journal of Finance</i> appeared first on Brattle.

Brattle Principal Paul Hinton has coauthored a recent Bloomberg Law article with former Assistant US Attorney Sid Kamaraju of Pryor Cashman detailing some of the sanctions compliance challenges that both traditional finance and the crypto industry face. The article also identifies the limitations of surveillance strategies centered on list-based screening and examines how past regulatory investigations demonstrate the need for a sophisticated implementation of a risk-based approach to avoid enforcement actions. 

The full article, “Navigating Russia Sanctions Compliance in the Crypto Space,” is available below.

View Article

The post Principal Paul Hinton Examines Russian Sanctions Compliance Challenges and Enforcement Risks Facing the Financial Services and Crypto Industries appeared first on Brattle.

Liu and the California shell companies he controlled lied to US Customs and Border control to avoid paying anti-dumping and countervailing duties, which had been imposed in 2011 on certain types of extruded aluminum imported from China into the US. Aluminum extrusions were disguised as aluminum pallets, which were never purchased and instead sat stockpiled in warehouses for several years.

In the US Department of Justice’s (DOJ’s) investigation into Liu and the California companies, a Brattle team – led by Principals Torben Voetmann and Mark Sarro and Associate Adrienna Huffman – aided prosecutors in analyzing Perfectus’s stock price reaction in response to certain company activities. At trial, Mr. Voetmann testified about the conglomerate’s IPO prospectus and the related-party disclosures it was compelled to provide to shareholders.

In August 2021, a federal jury found all six of the California companies guilty of conspiracy, wire fraud, and passing false and fraudulent papers through a customhouse. On April 11, 2022, all six entities were sentenced to five years of probation and ordered to pay $1.83 billion in restitution.

View the Case Highlight

The post Brattle Testimony Supports DOJ Prosecution of California Companies for US Tariff Evasion appeared first on Brattle.

For most direct sales companies, income disclosure statements (IDSs) are their most prominent – and public – presentation of the earnings opportunity available to prospective and current distributors. In late 2021, the Federal Trade Commission (FTC) sent letters to more than 1,100 companies, including virtually every major direct selling company and various other types of “gig economy” businesses, warning of the possible penalties for IDS misrepresentations – which could amount to significant costs. Ensuring that IDSs reliably and accurately reflect the actual experience of a typical distributor, as confirmed in the company’s business intelligence data, should be a top priority for every direct seller.

The full article, “Prioritize Your Income Statement: Here Are the Best Practices to Ensure Yours Is Effective, Accurate, and Truthful,” coauthored with a team from Winston Strawn, is available below.

The post Best Practices for Developing Accurate Income Disclosure Statements: Dr. Branko Jovanovic Discusses in a Recent Article appeared first on Brattle.

“Branko is an asset to our firm’s securities and finance team,” said Brattle President & Principal David L. Sunding. “His deep expertise in issues related to multi-level marketing compensation models, securities fraud investigations, and regulatory actions, will further enhance our ability to provide the clear, independent insights needed to support clients in the ever-changing marketplace.”

Dr. Jovanovic applies his sophisticated econometric expertise to address liability and damages issues in securities class actions and market manipulation matters. He has helped clients respond to formal investigations and requests from regulatory entities like the US Federal Trade Commission, the Securities and Exchange Commission, and the Financial Industry Regulatory Authority, as well as testified on a broad range of matters before federal and state courts, regulators, and arbitral tribunals. In his MLM experience, Dr. Jovanovic has provided analyses on matters related to regulatory investigations, consumer class actions, internal investigations, and compensation model restructuring.

“I’m thrilled to be back at Brattle, where I can continue to provide top-notch consulting and testifying services for my clients,” Dr. Jovanovic said. “I look forward to collaborating with my colleagues, mentoring junior team members, and promoting our firm’s diversity, equity & inclusion efforts.”

To learn more about Dr. Jovanovic, please see his full bio.

The post Securities and Finance Expert Dr. Branko Jovanovic Rejoins The Brattle Group as a Principal appeared first on Brattle.

“These talented individuals provide in-depth expertise to a vast array of clients on matters related to financial services, energy, tax, and more,” shared Brattle President & Principal David Sunding. “In addition, they have made exemplary contributions to mentoring and developing their colleagues, and truly demonstrate the exceptional leadership pipeline we are fortunate to have at the firm.”

Our new Principals:

• Hollie Mason | Practice Leader: Broker-Dealers & Financial Services | Chicago
  An attorney with more than 15 years of experience in the financial industry, Ms. Mason provides expert testimony and consulting services concerning securities litigation and enforcement matters. She has deep knowledge of Financial Industry Regulatory Authority (FINRA) and Securities & Exchange Commission (SEC) rules.
• David McKnight | New York
  Mr. McKnight has over 20 years of experience providing expert testimony and consulting services in matters pertaining to mass torts, securities, finance, valuation, and bankruptcy. In mass tort matters, he has worked with liability forecasts, insurance coverage, and discounted cash flows.
• Albert Metz | New York
  Dr. Metz is a securities and finance expert with deep experience in credit analysis, financial modeling, asset pricing, market efficiency, and event studies. He has consulted on asset pricing, antitrust, mergers and acquisitions, market manipulation, collusion, fixed income securities, and various debt derivatives.
• Christine Polek | Boston
  Ms. Polek serves as a consulting and testifying expert in complex litigation requiring the application of economic, financial, and statistical analysis to legal and regulatory issues – with a focus on valuation, tax controversy, and labor and employment.
• Akarsh Sheilendranath | Boston
  Mr. Sheilendranath is an energy economist with a unique blend of expertise in wholesale electricity markets, electric transmission, and regulatory corporate finance. He specializes in transmission policy, utility investment strategy and planning, large-scale renewable integration, and cost-benefit assessments.
• Anul Thapa | Boston
  Mr. Thapa has over 12 years of experience applying economic and finance principles in complex oil and gas-related litigation, arbitration, and regulatory proceedings. His experience in commercial disputes includes damages estimation, valuation, and pricing related to energy assets and contracts.
• Mike Tolleth | New York
  Mr. Tolleth specializes in the economic analysis of energy markets, with expertise in financial modeling and valuation of energy assets, contracts, and businesses. He supports clients in litigation and arbitration matters and provides expert testimony related to cost of service, rate design, cost of capital, regulatory policy, long-run marginal cost pricing, and market power.

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