Derrelle M. Janey

Bar / Professional Activity

• New York
• U.S. Court of Appeals for the First Circuit
• U.S. Court of Appeals for the Second Circuit
• U.S. District Court for the Eastern District of New York
• U.S. District Court for the Northern District of New York
• U.S. District Court for the Southern District of New York
• U.S. District Court for the Western District of New York
• U.S. District Court for the Western District of Michigan
• U.S. District Court for the Eastern District of Michigan
• U.S. District Court of Colorado

Verdicts / Settlements (Case Results)

• New York State Attorney General v. GPB Capital Holdings, et al., 45028/2021, New York Supreme Court, New York County:  This case commenced against the former executives of GBP, similar to other litigations against the same persons brought by various state's attorney generals as well as the DOJ and SEC, on the basis of claims that said persons conspired together to effectuate what is often described as the largest automotive private equity Ponzi scheme in US history.  My client, Jeff Lash, cooperated early on with NY AG's investigation.  The amount Mr. Lash forfeited to the DOJ in the federal criminal case was deemed accepted for restitution purposes in the NY AG case.  Additionally, Mr. Lash was required to pay a $250k fine to the NY AG.  On May 16, 2025, the case was dismissed as to Mr. Lash.  The case remains ongoing with respect to the other defendants., 2025
• SEC v. GPB Capital Holdings, LLC et al, 21-cv-00583 (MKB)(VMS), Southern District of New York:  in a parallel complaint to the DOJ, the SEC brought charges against various individuals in what is billed as largest automotive private equity Ponzi scheme in US history.  My client, co-defendant Jeff Lash, cooperated early with the SEC investigation and entered into a consent agreement, followed by a settlement agreement that attributed the amount Lash paid in forfeiture to the Government to satisfy the disgorgement requirement for the SEC case.  On December 19, 2025, Mr. Lash was dismissed from the SEC case.  The matter remains ongoing with respect to the other defendants., 2025
• Klima v. Novitas, 654350/2022, Supreme Court of New York, New York County--my client is the plaintiff, Klima, commencing this action against the company Novitas, a litigation funding business that provided funding for her divorce matter.  To secure against the approximately $300k "investment" Novitas made in Klima's divorce action, Novitas put a UCC-1 lien against Klima's multimillion dollar apartment, without her permission.  The problem is that the apartment was an asset to be sold in the divorce and was in contract with a third-party, thus spurring a lawsuit against Klima from the third party (Karla Bruning and Philip Hospod v. Klima, Index No. 654919/2022, Supreme Court of New York, New York County).  After years of litigation, including Novitas claiming that Klima owed them millions of dollars in damages, and the plaintiffs in the related case making a similar claim, we settled this litigation by setting up a pool of $500k (a bond) and determining what amounts the litigants would receive from the bond.  The case was dismissed on that basis in both courts. , 2025
• USA v. Gentile et al, 21-cr-00054 (RPK)(PK) (EDNY):  I represented the co-defendant, Jeff Lash, in this multi-defendant conspiracy case billed as the largest automotive Ponzi scheme case in US history.  Following years of cooperating with the Government investigation, including testifying at trial against his co-defendants, the Government made a motion pursuant to 5K1.1. for leniency in relation to my client and, at the sentencing hearing, and upon the defense presentation at sentencing, the District Court ordered that my client, Mr. Lash, receive a sentence of "time-served," which was the defense recommendation.  This order was in stark contrast to the Government recommendation of several years of incarceration., 2025
• Jakes v. Youngblood, 24-cv-01608, Western District of Pa.:  lead counsel to plaintiff in a high-profile complaint alleging defamation and conspiracy to commit defamation, we succeeded in getting dismissal of defendant's motion to dismiss; caused defendant's counsel to, in effect, removed from the lawsuit for AI hallucinations; and, ultimately, voluntarily dismissed the lawsuit on the basis that putative co-conspirators recanted and named defendant was left superfluous, as a practical matter, given the litigation., 2025
• In post- trial litigation, United States of America v . Laurence Doud III, 19-CR-285 (SDNY), I submitted and argued at oral argument a Rule 29 (and in the alternative Rule 33) motion to set aside the jury verdict based on the failure of the Government to adduce sufficient evidence at trial to support the jury verdict on three grounds.  Among those, critically, was the issue of drug weight in this precedent setting case where the Government sought to convict the CEO of a drug distribution company for illegal distribution of controlled substances.  On the issue of drug weight, the Court granted my motion, thus, overturning the jury verdict on drug weight, thereby eliminating the statutory 10 year minimum that would have been otherwise imposed at sentencing.  At sentencing, I argued for a recalculation of the Sentencing Guidelines as proposed by Probation and the Government as to the controlled substances weight for the purposes of sentencing and that application was granted.  Accordingly, the Guidelines changed from 120 months to 27-33 months.  Over the Government's objection, and its recommendation for 180 months, in this pivotal case, the Court sentenced my client to the lowest end of the Guidelines range: 27 months., 2023
• United States of America v. Robert Sabet, 21-cr-00140 (United States District Court, Eastern District of New York)--my client, the defendant in this federal criminal action, was charged, inter alia, with conspiracy to violate the federal health care statutes.  Here, the Government argued that the Court should sentence Mr. Sabet in a Sentencing Guidelines range of 63-78 months and Probation argued for the lower end of that range.  On the basis of the defense sentencing submission, the facts of the case, and a multi-hour sentencing argument, the defense persuaded the Court to sentence Mr. Sabet below the Guidelines range and he was sentenced to only 30 months.  , 2022
• Marine Electric Systems, Inc. et al. v. MES Financing, LLC et al., 22-cv-02643 (United States District Court, District of New Jersey)--here, I represented the plaintiffs and was retained as substitute counsel in the midst of discovery in support of a preliminary injunction application to prevent the defendants, a private equity investor group, from foreclosing on the stock of the owner of Marine for alleged default of the investors' lending arrangements.  Foreclosure would have meant the owner immediately losing control of a business he managed and controlled for 40 years, an important US defense navy contractor.  The plaintiffs filed suit alleging civil conspiracy to "steal" the company from the plaintiff owner and made application for the preliminary injunction.  Following an evidentiary hearing on the preliminary injunction and on the basis of extensive submissions, the District Court granted our motion for preliminary injunction holding that plaintiffs had met their burden for likelihood of success on the merits. , 2022
• United States of America v. Laurence Doud III, No. 19-CR-285 (GBD) (Southern District of New York); represented defendant in precedent setting criminal trial to hold former CEO of drug distributor criminally responsible for distributing opioids to pharmacies that illicitly sold the drugs.  Jury voted to convict Doud.  Matter is currently in post-trial litigation.  , 2022
• In the Matter of GPB Capital Holdings, LLC, et al, State Action No. 2000838.  Representing the defendant Jeffrey Lash in this matter before the Illinois Securities Commission, Janey settled the matter by way of a "neither admit nor deny" consent decree without any financial penalties imposed on the client-defendant., 2021
• Royal Operation System Enterprise, Inc. v. Takako Kobayasji, Index No. 656120/2018 (NY County).  Representing the defendant, Janey settled the commercial dispute., 2021
• Northshore Pharmacy v. Midwest Pharmaceutical Supply, 20-cv-979 (District of Ohio).  Representing the defendants, Janey settled the matter in lieu of trial., 2021
• Abbott Laboratories et al. v. Adelphia Supply USA et al., 15 Civ. 05826 (CBA)(LB)--settled this multi-year litigation in respect of defendants Coolrelic Inc. and Ralph Amato., 2020
• Abbott Laboratories et al. v. Adelphia Supply USA et al, 15 Civ. 05826 (CBA)(LB)--settled this multi-year action in respect of defendant NWHOLESALDEALS, 2020
• In Re Intuniv Antitrust Litigation, 18-MC-00062-CEM-DCI - won motion for protective order quashing non-party subpoena for documents and testimony on behalf of former CEO of competitor of Intuniv., 2019
• In Re: Loestrin 24 FE Antitrust Litigation, United States District Court for the Southern District of Florida, Case No. 18-22581-MC-Altonaga/Goodman- won motion to quash subpoena for documents and testimony served upon former CEO competitor of Loestrin, 2018
• Direct Access Partners, LLC v. Rothstein, Kass & Co., P.C., Docket No. L-2107-14, New Jersey Superior Court Law Division, Essex County.  Trial counsel to broker-dealer in action against former accountant.  Matter settled during the course of trial. , 2018
• United States of America v. Jack Ventola, 15-cr-10356 (District Court of Masschusetts) (DPW).  Mr. Janey represented Jack Ventola in this white collar criminal tax prosecution.  Client entered into a plea arrangement with the Government and the judgment of conviction at the sentencing hearing was 24 months of incarceration for failing to pay taxes for 8 years.  Based on the defense sentencing submission, including the described acts of charity and involvement in the community, the Court sentenced Mr. Ventola to 24 months instead of the 36 month term requested by the Government. , 2018
• Peter Best v. Marva Layne & Asim Walker, Docket No. 18 2299 (Second Circuit Court of Appeals, 2018).  Mr. Janey represented the plaintiff-appellant, Peter Best, on appeal of District Court (SDNY) abstention of jurisdiction over defamation and tortious interference action on Colorado River grounds.  Following multiple sessions of Second Circuit CAMP mediation, the parties settled the matter by stipulation, more particularly, preserving Mr. Best's defamation and other tort claims for adjudication in a related state court action., 2018
• Securities and Exchange Commission v. Town of Ramapo, et al., 16 CV 2779 (CS)(SDNY).  Represented town attorney (corporation counsel) in an alleged municipal fraud action prosecuted by the SEC.  Settled the SEC matter with minimal restrictions and penalties on client., 2018
• Sugarhouse Casino, HSP Gaming, LP v. Craig Carton, Docket No DJ-041942-18 (Superior Court of New Jersey, Mercer County, Law Division).  Plaintiff commenced action against client while client was in the course of a federal criminal investigation.  Civil suit for money damages settled., 2018
• City National Bank v. Carton, Index No. 153753/2018 (N.Y. Sup. Ct. 2018).  Financial institution action against client while client was in the course of a criminal indictment.  Civil suit for money damages settled., 2018
• United States of America v. Craig Carton et al, 17 cr 680 (CM) (SDNY).  White collar criminal case where the defendant was found guilty.  Mr. Janey served as trial counsel., 2018
• In re In the Matter of Jordan Peixoto, Administrative Proceeding File No. 3-16184.  Jordan Peixoto was charged by the SEC with substantive insider trading in the stock of Herbalife.  Following intense pre-trial motions and filing a petition to transfer the matter to the Federal District Court (suing the SEC), the Division of Enforcement filed a motion to dismiss the charges against my client, Mr. Peixoto., 2014
• In what has been touted as the most important cybersecurity-related action to date at that time, the SEC fined Morgan Stanley $1 million for violations of the so-called safeguards rule, which requires firms to adopt policies and procedures to safeguard customer information.  This penalty occured in the context of the former Morgan Stanley employee, Galen Marsh, allegedly stealing data from 730,000 Morgan Stanley customer accounts.  I, along with my partner, Robert Gottlieb, represented Marsh in both the federal criminal case against him, as well as the SEC enforcement action.  In terms of the criminal case, Mr. Marsh was sentenced to 3 years of probation and, with respect to the regulatory enforcement action, Mr. Marsh was suspended from the securities industry for 5 years with an opportunity to reapply. , 2016
• On behalf of an investor, Mr. Janey commenced a securities litigation action against a public company in federal court in New York alleging alternatively securities fraud and breach of contract in connection with a securities offering.  The defendants filed a motion to dismiss the complaint and were defeated.  In a rare instance, the court's order dismissing the motion to dismiss practically invited the plaintiff to file a motion for summary judgment.  The case is captioned as Cottam v. Global Emerging Capital Group, LLC et al, 16-cv-04584 (SDNY) (RJS)., 2017
• In February 2018, in a multi-defendant action prosecuted by the SEC alleging a multi-million dollar fraud scheme by the municipality (issuer) against investors, Mr. Janey represented the Town's corporate counsel, who was named as a defendant in the SEC action.  Ultimately, Mr. Janey reached a settlement in principle with the SEC Enforcement Division staff (pending approval by the SEC Commission) to settle all claims against his client on "a neither admit nor deny basis."  (The case is captioned as SEC v. Town of Ramapo, et al., SDNY, No. 16-CV-02779.)  , 2018
• As special litigation counsel to a chapter 7 Bankruptcy trustee, Mr. Janey led an investigation that culminated in legal action against the chapter 7 debtor's former law firm alleging claims, including aiding and abetting criminal fraud, legal malpractice and fraudulent conveyance.  The matter is captioned as Ian J. Gazes, as chapter 7 trustee for debtor WJB Capital Group, Inc., v. Mark Skolnick and Platzer, Swergold, Levine, Goldberg, Katz & Jaslow, LLP, Adv. Pro No. 15-01298 (Bankr. SDNY) (SCC).  After extensive litigation in both federal bankruptcy and district court, Mr. Janey successfully settled this complicated federal litigation matter., 2017
• In February 2018, Mr. Janey, as counsel to the principal individual and corporate defendants, settled a multiyear litigation alleging, inter alia, claims of fraud and conversion.  The case is captioned as The MaxCure Foundation, Inc. and Richard L. Plotkin v. Taylor J. Van Deusen, Wendy Van Deusen, Longhouse Reserve, Ltd., Tailored Productions, and Duke+Van Deusen Events, LLC, Docket No. BER-L-1070-15, Superior Court of New Jersey Law Division: Bergen County. , 2018
• In the largest trade infringement action prosecuted by the global pharmaceutical giant, Abbott Laboratories, Mr. Janey represented five commonly owned distributor companies based in Florida (who were among over 200 other defendants) defending against Abbott's infringement, fraud and civil RICO claims.  Mr. Janey, on behalf of his clients, filed a motion to dismiss Abbott's RICO and unjust enrichment claims, and conducted the oral argument on behalf of his clients and the clients of two other law firms (combined representing 46 defendants in the case).  By memorandum and order, Judge Carol Bagley Amon, chief judge of the Eastern District of New York, dismissed Abbott's RICO and unjust enrichment claims.  The case is Abbott Laboratories et al v. Adelphia Supply USA et al, 15 CV-5826 (CBA)(LB).  Abbott was represented by the law firm Patterson Belknap. , 2017
• In February 2018, on behalf of the chapter 7 trustee for the estate of Direct Access Partners, LLC, Mr. Janey, along with co-counsel, successfully settled an auditor malpractice action against a national accounting firm that was the former auditor for the broker-dealer/debtor in bankruptcy.  The case settled during trial, after opening statements and after the jury had been sworn.  (The case is captioned as Direct Access Partners, LLC v. Rothstein, Kass & Co., P.C., Superior Court of New Jersey, Docket No. L-2107-14.) , 2018

Videos

• Derrelle Janey represented sports radio talk show host, Craig Carton, in a federal criminal trial where he was accused of effectuating a Ponzi Scheme.  At sentencing, the Government sought 6-7 years incarceration; however, based on the sentencing submission, the Court sentenced Mr. Carton to 3 1/2 years.  In this interview, Derrelle Janey discusses the crimes and the sentencing., Derrelle Janey Speaks About Sentencing of Accused Ponzi Scheme Client, 2019

Representative Clients

• Craig Carton, nationally syndicated sports radio talk show host, 2017
• Bishop TD Jakes, internationally acclaimed pastor, Dallas, Texas, 2024
• Michael Klein, former Town Attorney, Town of Ramapo, New York, 2018
• Laurence Doud III, former chief executive, Rochester Drug Cooperative, 2018

Pro bono / Community Service

• NAACP, Member

Educational Background

• J.D., University of Michigan Law School, 1996
• B.A., cum laude and High Honors, Kenyon College, 1993

Scholarly Lectures / Writings

• Critique of the Government's use of wiretaps in recent insider trading cases., co-author, Wiretaps and Fourth Amendment: Lessons from the Galleon Prosecutions, New York Law Journal, 2012
• Analysis of recent regulatory expectations for chief compliance officers of financial services companies., co-author, Broker-Dealer Compliance in Era of Regulatory Pressures, New York Law Journal, 2014
• Description of current state of the law regarding legal requirements for application to stay civil proceedings where defendant also faces concurrent criminal action., author, Parallel Proceedings: Staying the Civil Action, New York Law Journal, 2014
• Analysis of the limitations for defendants defending against claims commenced in SEC administrative enforcement proceedings as compared to defending against such claims in federal court. , Author, The Odds Are Stacked Against Insider Trading Defendants, Law360, 2015
• Description of the various ways in which parallel criminal cases impact and potentially hinder bankruptcy adversary proceedings, and approaches for overcoming those situations.  , Author, How Criminal Cases Affect Bankruptcy: Debunking the Myths, Law360, 2016
• Using the dismissal of RICO and unjust enrichment claims in Abbott Laboratories et al v. Adelphia Supply USA et al, 15-cv-5826, this article describes and analyzes the heightened pleading standards required for pleading RICO claims and the reasons courts in the Second Circuit carefully consider whether such claims should proceed beyond the pleading stage., Author, Pleading Civil RICO: Lessons from the Abbott Litigation, Law360, 2017

Other Outstanding Achievements

• Attorney cameo in HBO Documentary, Wild Card, which describes the crimes, sentencing and underlying causes of the Ponzi Scheme prosecution of client Craig Carton.  Mr. Janey presents a discussion of the alleged crime, the sentencing and the restitution. , 2020

Honors

• Named by the Board of Judges to serve on the Magistrate Judge Selection Committee for the U.S District Court for the Eastern District of New York, 2024
• Named annually to the New York Metro Super Lawyers list since 2022
• Consistently named a “Rising Star” by New York Metro Super Lawyers, 2015-2021
• Recognized as one of America’s Top 100 “High Stakes” Litigators
• Named among the Lawyers of Distinction’s “Power Lawyers” by The New York Times, 2021-2022
• Named among the 22 “Distinguished Leaders” in the New York Legal Industry by the New York Law Journal, 2017

Industry Groups

• Financial Services
• Health Care
• Private Equity

“Mr. Janey has extraordinary knowledge of the intricacies of securities and regulatory representation of corporations, businesses and individuals. His background in finance, investment industry and corporate sets him apart to other attorneys in this same area. His preparation at all stages of investigation and litigation cannot be matched by any other attorney.”

“Derrelle is one of the up and coming stars in the white collar litigation area - especially in the securities industry. A client favorite who works tirelessly for his clients.”