Joseph Cioffi

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.