Areas of Focus
“In my business career, I disliked the lawyers who so easily said ‘no’ in order to avoid any risk without a rational assessment of the potential reward and alternatives. I internalize my clients’ goals and find a way to achieve them as if they were my own.”
Timing Matters. Stay Ahead with
With 20 years of experience tracking market cycles and a deep knowledge of the laws governing financial risk, Joseph Cioffi brings a multifaceted approach to counseling his clients — U.S. and international financial institutions, fintech and marketplace lenders, creditors across industries, and marketing communications companies. From corporate transactions to bankruptcy to commercial litigation, he helps them address immediate needs while positioning themselves for long-term success.
Joseph’s practice focuses on credit and finance transactions, insolvency matters, and financial products litigation. He handles large-scale commercial and bankruptcy cases; helps marketing communications companies and other intermediaries resolve liability when a counterparty becomes insolvent; and counsels clients in lending and credit markets, including mortgage and auto, fintech, student loans, and other markets.
Joseph fluently applies his experience across disciplines and industries to give his clients the advantage. For example, his deep understanding of how bankruptcy courts interpret loan enforcement provisions allows him to take a pragmatic approach in negotiating credit terms.
A former financial analyst at Kraft General Foods and brand manager at Nabisco, Joseph has a keen understanding of the information businesspeople need to make successful decisions. Recognized as a thought leader in subprime auto lending and securitizations, he created the firm’s award-winning Credit Chronometer blog to share his knowledge and encourage dialogue on key legal and industry topics.
Developed a proprietary strategy to limit a marketing communications intermediary's legal exposure to media and other third parties when its clients became insolvent and the threat of preference liability loomed. This strategy has since been implemented on numerous occasions to save intermediaries hundreds of millions in situations where their clients have not paid them or have sought to claw back funds in bankruptcy.
Achieved numerous victories, including multiple dismissals and favorable resolutions for one of the largest residential mortgage-backed securities (RMBS) sponsors in cases brought by investors and securitization trusts for fraud and repurchase, leading to the dismissal of over $1 billion in claims. These litigation victories created precedent that cut off future claims against our client and other defendants in the RMBS space and benefit ABS sponsors in all credit markets with similar deal structures.
Defending a European investment bank against over $600 million in exposure from an ongoing fraudulent transfer lawsuit brought by Madoff bankruptcy trustee based on derivative transactions, including total return swaps and leveraged notes. In Madoff-related litigation, achieved, with other similarly situated banks, dismissal of over $200 million state law- and foreign insolvency-based actions asserted by liquidators of largest offshore Madoff feeder fund. The litigation resolved legal exposure for the client incurred in providing its customers with desired synthetic deal structures.
Pursuing over $300 million in recoveries from Wells Fargo as the master servicer of securitization trust for breach of contract and failing to comply with servicing standards, through a detailed analysis and proprietary calculation of losses caused by servicing failures, including delays in foreclosure, failures to modify loans and unreasonably low-priced collateral sales, all of which contributed to the client-sponsor's legal exposure for repurchases of loans.
Advised investors on regulatory risk exposure of subprime auto lending targets and potential litigation recoveries in RMBS and subprime auto ABS. Our guidance enabled the investors to anticipate regulatory changes and litigation outcomes, helping to determine long and short positions.
Counseled a bank working under partnership with a marketplace lender in compliance with consumer protection and privacy laws, clearing the path to client offering new online products and creating consortium for industry sharing of information.
Advised one of the largest subprime auto lenders on solutions to minimize losses from consumer fraud, including fraudulent fees and liens placed on collateral by mechanics and impound lots.
Developed a holding structure of distressed loans to insulate a global investment bank from reputational and financial risk related to mortgaged properties and minimize legal exposure in liquidating of portfolio.
Insights + Events
- Event Association of Insolvency & Restructuring Advisors Advanced Restructuring & Plan of Reorganization Conference | Digital Assets and Investors in Distress
November 14, 2022
- Press Mention Commercial Property Executive | How Rising Interest Rates Impact CMBS
September 28, 2022
- Press Mention Wealth Management Real Estate | Maturing CMBS Loans Face Greater Refinancing Hurdles
September 19, 2022
- Press Mention SCI | The HEAT is on
September 7, 2022
- Press Mention Real Estate Capital USA | Five Things To Know About Underwriting Cannabis-related Real Estate Loans
August 1, 2022
- Publication Reuters Legal News | How Companies Can Manage the Risks in Handling Alternative Credit Data
July 27, 2022
- Press Mention Auto Remarketing Podcast | Identifying Risk Sources With Joseph Cioffi of Credit Chronometer
June 17, 2022
- Event 26th Annual Non-Prime Auto Financing Conference | Pandemic Strategies for Success: Managing Legal and Business Risks
June 2, 2022
- Event LendIt Fintech USA | How Fintech is Finally Disrupting Auto Finance
May 26, 2022
- Press Mention National Cannabis Industry Association | Is American Cannabis Still the Wild West?
May 18, 2022
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- Rutgers Law School (J.D., 1995)
- New York University (M.B.A., 1990)
- Pace University (B.B.A., 1986)
- New York
- New Jersey
Member, Davis+Gilbert Executive Committee
Member, Davis+Gilbert Legal Opinion Committee
Member, New York State Bar Association
Member, Non-prime Auto Financing Association
Member, American Bankruptcy Institute