Kathleen M. Marcus

As a former attorney with the SEC’s Division of Enforcement, Kathleen Marcus brings a deep understanding of the federal laws and government processes for clients facing regulatory and white collar investigations. Marcus has secured more than 30 declinations to bring an action from the SEC and DOJ. Marcus has significant experience before a host of agencies and regulators, including the SEC, DOJ, FINRA, FDA and the FCC, as well as number state agencies. Clients rely on the trust she has built with regulators and her ability to interact with government agencies to negotiate a successful outcome. Using her streamlined, careful approach, she has defended clients against accusations of fraud, accounting and disclosure discrepancies, insider trading, breaches of the Foreign Corrupt Practices Act, and violations of the Federal Anti-Kickback statute and False Claims Act. Marcus also assists clients facing cyber security incidents and defends regulatory investigations involving blockchain, cryptocurrency and token offerings.

Clients often call on Marcus to lead internal investigations to fully assess risk and limit possible sanctions posed by looming government investigations. Her thorough, yet cost-efficient approach to fact-finding enables her to spot problems quickly, assess potential liability and offer solutions to navigate through challenging issues. Marcus also assists clients seeking to mitigate their future enforcement risks by conducting compliance assessment and developing robust compliance programs.

Marcus is a member of Stradling’s Management Committee and serves as Co-Chair of the firm’s Enforcement Defense and Investigations Practice.

Some highlights of Kathleen’s career include the representation of:

A public medical device company in an SEC investigation of disclosure timeliness related to FDA approval for which the SEC declined to seek an enforcement action.

A technology company that suffered a decades-long, $20 million misappropriation scheme perpetrated by high-level executive officers. Working with a special committee of its board of directors, Kathleen resolved the matter internally with minimal disruption to the business.

A public technology company facing an SEC investigation of revenue recognition issues related to invoicing for which the SEC declined to seek an enforcement action.

A municipality facing an SEC investigation of omissions and inaccuracies within continuing disclosure obligations for which the SEC declined to seek an enforcement action.

A medical device company conducting an internal investigation related to inadvertent use of an unsterile demonstration device in a patient procedure. The company used Kathleen’s findings to productively interface with the hospital and defend against litigation.

A large private equity fund facing an SEC investigation of differences between disclosed and utilized valuation methodologies for which the SEC declined to seek an enforcement action.

A public medical device company victimized by a cybersecurity attack resulting in the theft of hundreds of employee W2s. After Kathleen assisted the company in conducting an internal investigation, reporting the incident to state attorneys general and Canadian authorities, and interfacing with state and federal law enforcement, she helped the company draft enhanced security compliance processes and provided employee training.

A community property management company in an internal investigation of a cybersecurity attack and attempted misappropriation of customer and affiliate data. After retaining a forensic expert to fully mitigate the attack, Kathleen recommended compliance enhancements and interfaced with her client’s customers to outline security enhancements and regain confidence.

Recent Speaking Engagements

Panelist, "SPACs, Climate and ESG, and Emerging Enforcement Priorities", Securities Enforcement Forum West (May 2022)