James Gavin Lundy

Partner

Overview

Jim Lundy is a Partner and Litigation attorney with Foley & Lardner LLP. Jim is based in the firm’s Chicago office where he is a member of the Securities Enforcement & Litigation Practice Group.

Jim’s mission is to empower clients to overcome enforcement investigations by the SEC and other regulators with their reputations and relationships with their stakeholders unscathed and intact by utilizing his experiences from his service with the SEC’s Division of Enforcement for almost a decade and his strategic development since. He successfully resolves high-stakes enforcement matters for his clients drawing on his deep technical insights and emotional intelligence.  

Jim’s clients include public companies and boards of directors, investment advisers, broker-dealers, hedge and private equity funds, investment banks, futures trading firms, and the leaders of these organizations. Jim has helped these clients shut down multiple high-stakes SEC and other regulatory investigations with no charges filed, and he has lowered enforcement settlement demands by hundreds of millions of dollars. Jim also leads internal investigations; serves as an independent monitor; provides counsel on governance, compliance and policy issues; handles cybersecurity regulatory investigations; defends clients in complex financial services litigation; and serves as an independent monitor. Regarding his compliance and governance counseling practice, Jim spent the last several years of his service with the SEC helping lead the Division of Examinations program for the Midwest region.

Representative Matters*

Public Companies and Internal Investigations 

  • Representing a CEO in the automotive industry in an SEC enforcement investigation pursuant to the SEC’s Earnings Per Share Initiative.
  • Represented a CEO and company in the logistics industry in a parallel investigation by the SEC and the Department of Justice (DOJ) into the company’s accounting practices after a multi-year restatement that led to the resignation of the CFO, and subsequent charges against him and certain other corporate officers. While the CFO was criminally convicted, no charges were filed against the CEO or the company by the SEC or DOJ. Also provided counsel to the company’s board of directors and audit committee throughout the investigative process.
  • Led an internal investigation of an international company in the semiconductor industry regarding potential internal control and financial reporting violations due to misappropriations of company funds by an officer of an Asian subsidiary, and provided counsel to the company’s board of directors and audit committee. As a result of the internal investigation, we self-reported to the SEC, but persuaded them not to pursue an enforcement action.  

Investment Advisers, Broker-Dealers, and Other Firm/Fund Work

  • Representing the general counsel and chief compliance officer (CCO) of a private equity fund in an investigation involving the valuations of illiquid assets and complex custody-rule compliance issues.
  • Represented a dual registrant in an investigation conducted by the SEC’s Asset Management specialty unit after a referral from the Division of Examinations, and obtained termination notices for both the investment adviser and the broker-dealer closing the investigation without charges. This was despite the Division of Examinations’ deficiency letter alleging obstruction of justice and securities fraud violations by the firm.
  • Represented the CCO of a large mutual fund complex in an SEC investigation involving trading and valuation issues for certain illiquid holdings of a fixed income mutual fund. The SEC focused its investigation on the alleged mismarking of bonds to inflate their pricing at the end of a quarter. Based on strategies used at the client’s SEC testimony session and a “white paper” submission, the SEC issued a termination notice closing its investigation without charges. 

Futures and Derivatives

  • Represented a futures trader affiliated with a futures commission merchant (FCM) in CFTC and CME Market Regulation investigations into the trader’s and the FCM’s practices regarding alleged manipulative trading in certain exchanges of futures for physical transactions. After presenting the trader for interviews and making submissions, the CFTC and the CME closed their investigations without taking action against the trader and the FCM.
  • Represented a sub-adviser to a mutual fund in an investigation conducted by the SEC’s Complex Financial Instrument (CFI) specialty unit regarding the client’s derivatives-based hedging strategy. Due to a “black swan” event, the mutual fund suffered almost $100 million ($275 million notional) in losses. Through a series of presentations and other advocacy efforts, persuaded the SEC to terminate the investigation without taking any action.

*Certain of these matters were handled prior to joining Foley.

Recognition

  • Federal Bureau of Investigation (FBI) — Exceptional Service in the Public Interest Award
  • Securities & Exchange Commission (SEC) — Shannon D. Ayers Examination Award of Excellence; Chairman’s Award for Excellence; multiple SEC Director’s Awards; multiple SEC Special Act Awards

Education

  • DePaul University College of Law (JD)
  • DePaul University (MBA)
  • University of Illinois at Urbana-Champaign (BA)

Professional Memberships

  • Association of SEC Alumni (ASECA), Director, 2021-2024
  • Futures Industry Association, Law & Compliance Executive Committee Member, 2018-2020
  • Securities Industry and Financial Markets Association (SIFMA)
  • Investment Adviser Association
  • National Society of Compliance Professionals
  • Special Olympics Chicago, the Warrior Scholar Project and LINK Unlimited Scholars.