Private Equity's Free Pass

The New York Times
July 26, 2014

Jordan A. Thomas comments on whistleblower bounties in the private equity industry and oversight by the SEC

Jordan A. Thomas, a partner at Labaton Sucharow and a former assistant director in the enforcement division of the Securities and Exchange Commission, represents the whistleblower.

"For more than a decade," he said, "many leading private equity firms in the country have collected billions of dollars in illegal fees for engaging in unregistered broker-dealer activities for things like M&A advice and debt offerings. By design, this failure allowed the industry to escape the oversight, limitations and expenses of the required broker-dealer regulatory scheme that all other market participants were subject to."