© 2017 The Texas Lawbook.
By Mark Curriden
(May 19) – The U.S. Securities and Exchange Commission announced Friday that Associate Director David L. Peavler is leaving his position as head of the enforcement division in the agency’s Fort Worth Regional Office to be the new general counsel at Irving-based HD Vest Financial.
White-collar securities experts say that the departure of Peavler, who is widely considered one of the nation’s leading authorities on accounting and financial fraud, is a significant loss for the SEC. He officially starts his new position Monday at HD Vest, which is a growing broker-dealer firm that specializes in turning tax accountants into financial advisors.
“David is an exceptional attorney whose integrity and professionalism are unparalleled,” SEC Regional Director Shamoil Shipchandler said in a statement to The Texas Lawbook. “Throughout his service, David has been responsible for some of the most significant cases at the Commission. The deep pool of talented attorneys that David has developed and led at the Commission will continue to fulfill our mission to protect investors as we simultaneously work to find David’s successor.”
Peavler, who received a degree in accounting at Baylor University and his law degree at the University of Texas, led several high-profile investigations and prosecutions, including the Seaboard Corporation case, where the SEC first established its corporate cooperation guidance. Other major cases led by Peavler included:
- The SEC’s enforcement action against Royal Dutch Shell, which resulted in Shell paying a $120 million penalty for overstating its reserves by 4.5 billion barrels;
- The SEC’s prosecution of Millennium Bank for its involvement in a $100 million international Ponzi scheme case; and
- The $46.8 million judgment against Life Partners for securities violations over information company leaders should have disclosed to investors.
Peavler also led the 2015 investigation and enforcement action against Houston-based KBR in what was the first case against a U.S. company for violating provisions of the whistleblower protections clauses in the Dodd-Frank Act.
“The SEC is losing one of its very best lawyers, not just in Fort Worth, but in the country,” says Kelly Hart & Hallman partner Toby Galloway, who is a former senior trial lawyer at the SEC.
Others agree.
“David has been a steady hand across multiple administrations in the Fort Worth office,” says Vinson & Elkins partner John Wander, who represents individuals and corporations in matters before the SEC. “He set a tone for enforcement during his tenure that put an appropriately high priority on protecting investors, but with a fair dose of pragmatism.
“To my mind, he is one of the key architects responsible for restoring the Fort Worth office reputation for careful excellence after the Stanford problems,” Wander says.
Before joining the SEC, Peavler was a partner in the trial section of Locke Lord, where he primarily represented major accounting firms in auditing malpractice and securities class actions. He also was an in-house lawyer in the corporate legal department at Phillips Petroleum Company and ConocoPhillips.
In 2016, the SEC recognized Peavler with its Irving M. Pollack Award, which recognizes agency employees who demonstrated fairness and compassion in dealings with the public.
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