New Jersey Lawyer & Attorney : Stark & Stark Law Firm : New Jersey Law Blog

In the December 20 U.S. 1 newspaper, Stark & Stark Associate Committee members Melissa Volet, Brian Murphy, Tom Onder and Rich Linderman were recognized for their efforts in collecting donations for area families who cannot afford holiday gifts for their children.

The donations were given to Martin House and the Jewish Family & Children's Service of Greater Mercer County's LIGHTS Program.  

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Lewis Pepperman, Co-Managing Partner of the firm, was quoted in the To Court Public, Lawyers Jump on Blog Wagon in the December 24 Star Ledger.

The story discusses the growing number of law firm blogs in New Jersey and across the country.  You can read the article here.

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This week's New Jersey Legal Update podcast will discuss the recent proposal by the SEC to increase the current hedge fund investment threshold to $2.5 million. This podcast will also discuss the SEC's newly proposed anti-fraud rule under the Advisor's Act of 1940.

This week's New Jersey Legal Update is presented by Aaron C. Buser, member of Stark & Stark’s Securities Group.

You can download the New Jersey Legal Update Podcast # 54 here. (5.9MB)

Technorati Tags: New Jersey : Podcast :  Securities : Hedge Fund

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In a move that was watched closely around the country, the New Jersey Legislature approved the formation of civil unions for same sex couples in response to the state Supreme Court's directive delivered in the Lewis v. Harris decison. The Legislation is now awaiting the signature of Governor Corzine who in the past has expressed his intention to sign the civil union bill. Although same-sex relationships will not called marriages, partners are now afforded all of the rights, responsibilities and obligatons associated with a marriage.

Technorati Tags: New Jersey : Civil Union : Same-Sex Marriage : Lewis v. Harris : Gay Marriage

 

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Aaron Buser, a member of the Securities Practice group, was quoted in SEC Raises the Bar for Fund Investors in Financial Times, December 2006.

Buser commented on the SEC's proposal to more than double the current investment threshold for hedge funds to $2.5 million.

You can read the story here.

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John MacDonald, a Shareholder in the Employment Law group, authored the article More Mines in the Minefield: Employment Law in 2007 for the December 2006 issue of Mercer Business magazine.

MacDonald discusses issues faced by employers such as wrongful termination, discrimination, and family leave.  You can read the article here.

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Thomas Giachetti, chair of the Securities Practice group, was quoted on the article Practice Management: What To Know Before You Break Away in the November 30 Dow Jones Newswire.

Giachetti commented on the problems brokers are faced with regarding employment contracts when they try to leave a big brokerage firm.

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Gary Forshner, a Shareholder in the Real Estate group of Stark & Stark, will be a speaking at NJICLE's 2007 Land Use Update on March 21, 2007 at the Doubletree Suites Inn in Mt. Laurel. The seminar will cover recent changes in the area of land use practice.

You can get more information or register online here.

Technorati Tags: New Jersey : Land Use

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Regulators can monitor them through their prime brokerage accounts; banks can watch them through their lending arrangements; and sometimes their managers choose to register under the Investment Advisers Act. So why are there more calls for regulation and oversight of hedge funds? The answer lies in the fact that the hedge fund universe is expanding; and not just in market participation, which has grown to an estimated $1.2 trillion, but in the nature and scope of its business. The role of the hedge fund has developed over time from a little understood pooled investment vehicle for wealthy and sophisticated investors to more conspicuous and influential endeavors such as investment banking and lending. It is in these latter roles that regulators have seemed to take more notice. In light of such recent incidents as the recent $6.5 billion loss suffered by Connecticut-based Amaranth Advisors and the Movie Gallery insider trading investigation, hedge funds are back on the front page and it has prompted discussion that they may need to attempt self-regulation of some kind or another. 

The most recent furor has erupted over allegations that certain hedge funds may have been using their dual roles as investors and bankers in a way that allowed them to misuse otherwise nonpublic information in their trading activity. It was recently alleged that hedge fund creditors to Movie Gallery, a movie rental chain, obtained confidential financial information by participating in a teleconference between the firm and its creditors, and subsequently traded on that information. Regulators are investigating whether or not recipients of nonpublic information did anything wrong, but the entire scenario highlights what many regulators have begun to worry about with regard to the lax federal and state regulation of hedge funds. While investment banks are required to maintain “Chinese walls” to protect confidential information from misappropriation, hedge funds, who are not regulated like banks, generally have not demonstrated enough safeguards to prevent the sharing of information. Regulators now hope that their concerns can be addressed in one of two ways: further regulation by the Securities and Exchange Commission or self-regulation by the hedge fund industry.

It appears that steps have been taken down each avenue. On the legislative front, the New York Times reported that several members of Congress are seeking suggestions regarding ways in which the government could improve hedge fund transparency. Lawmakers and regulators have been unable to find a regulatory alternative since a recent decision by the D.C. Circuit Court struck down a rule promulgated by the SEC, which would have required hedge fund managers to register under the Investment Advisers Act. Recently, the SEC announced its plans to consider revising the minimum standards for investors in hedge funds, tightening the income and net worth requirements. The Commission has also indicated a willingness to assess the application of the antifraud statutes to hedge funds. 

On the fund side, however, the Loan Syndications and Trading Association (LSTA), among whose members are banks and hedge funds, issued a Statement of Principles to “outline broad guidelines for the receipt, use and distribution by and to, loan market participants of confidential information that is generally available in the loan market and that may at times include material non-public information.” The concern is of the flow and misuse of non-public financial information gathered by its members in their “loan market activities” and applied in connection with their “securities market activities.” The principles suggest many key items for market participants such as hedge funds to consider, such as implementing internal controls for the flow of information in order to avoid entering into securities transactions on the basis of nonpublic information, tailoring the internal controls to the nature of the firm’s business, and enforcing information walls, trading restrictions and the like. 

For now, there is no concrete regulation in the works that appears as aggressive as the manager registration rule struck down by the D.C. Circuit. There are, as mentioned some changes being considered by the commission, but it is possible that a government regulatory initiative could be delayed by demonstrable regulation from within the industry. The LSTA guidelines are a start in the right direction. As hedge funds continue to grow, so do their capabilities. As they continue to offer more services to the industry, they become more vital to the market. It is imperative that the fund industry promotes and develops strong internal compliance. The alternative may be increased government regulation.

Technorati Tags: New Jersey : Hedge Funds

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This week's New Jersey Legal Update podcast will discuss the landmark case of Mt. Laurel Township v. MiPro Homes. This podcast will give a brief summary of the case, and how it will impact the future of New Jersey's real estate industry.

This week's New Jersey Legal Update is presented by Gary S. Forshner, Shareholder of Stark & Stark’s Real Estate Group.

You can download the New Jersey Legal Update Podcast # 53 here.(3.3MB)

Technorati Tags: New Jersey : Podcast :  MiPro : Real Estate :  Eminent Domain

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Today, the New Jersey Supreme Court issued a decision (PDF) in Mount Laurel Township v. MiPro Homes critical to the real estate development community, municipal government, and ultimately all of the citizens of the State of New Jersey. The decision authorizes ambush or pretense acquisitions of housing for families with school children and other uses deemed to be politically or economically undesirable. Given that real estate investment, housing, and commercial development are the backbone of the economy, this decision will reverberate through the halls of the legislature and at every kitchen table in New Jersey. The State has not planned for the social and economic fallout from this decision, including the likelihood that the State's attempt to get out of the tax and financial morass that exists will be further challenged as real estate investment opportunities are minimized and lost.

For more information see our media advisory on this decision here.

Read and listen about the history of the Mt. Laurel v. MiPro case here, here, here and here (podcast).

You can read Stark & Stark's press release on the Mt. Laurel decision, which includes audio clips of Gary Forshner discussing the decision's impact here.

Technorati Tags: New Jersey : MiPro : Eminent Domain : Open Space

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Stark & Stark is proud to announce that it will sponsor an upcoming two-day CLE seminar on Community Association Law.  Community Association Law - A Changing Landscape in a Growing Field will take place March 29 - 30, 2007 at the Marriott hotel in Somerset.

Christopher Florio and David Byrne, Co-Chairs of the firm's Community Associations group, will act as the event co-chairs.  Florio will lead a discussion on Case Law Update and Byrne will speak on Alternative Dispute Resolution.  Additional Stark & Stark attorneys will be present at the seminar, including Donald Brenner, who will be discussing Construction Defects, and Timothy Duggan, who will be addressing Tax Appeals.

The conference will also feature speakers from:

• Kalian Companies
• Toll Brothers
• Arthur Edwards
• Taylor Management
• Mirra & Associates
• CBIZ Valuation Group
• Community Associations Institute
• Community Services Group
• Rutgers School of Law
• North Fork Bank
• Wentworth Property Management

You can download a copy of the conference's agenda here.

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David Byrne, co-chair of the Community Associations group, was quoted in Can't Fight the Condo Board...or Can You? in the Sunday Bergen Record.

Byrne was commenting on the problem communities face with outdoor displays, and whether or not the ban of outdoor signage in a community association violates a homeowners' constitutional rights.

You can read the story here.

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This week's New Jersey Legal Update podcast will discuss the Employee Retirement Income Security Act (ERISA) of 1974. This podcast will give a brief summary of the act, and how ERISA can impact hedge funds.

This week's New Jersey Legal Update is presented by Aaron C. Buser, a member of Stark & Stark’s Securities Group.

You can download the New Jersey Legal Update Podcast # 52 here.(4.95 MB)

Technorati Tags: New Jersey : Podcast :  Securities  

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