About Krebs

Thomas L. Krebs, Securities Litigation, Regulation and Compliance Attorney Lawyer (c)2014 Brandon L. Blankenship

Tom Krebs represents clients in the areas of securities and class action litigation, broker-dealer litigation and arbitration, and other complex civil litigation. With an extensive background in securities regulation and enforcement and significant trial and arbitration experience representing both plaintiffs and defendants in securities-related matters, Mr. Krebs brings substantial expertise to the representation of corporate clients, broker-dealer firms and individual and institutional investors. Mr. Krebs served as Director of the Alabama Securities Commission from 1975 – 1982. During that time, he held several offices with the North American Securities Administrators Association, serving as its president in 1981, and co-founded the Leviticus Project, a six-state, 16-agency task force organized to investigate and prosecute crime in the coal industry that remains one of the most successful multistate cooperative investigative programs in U.S. law enforcement. Mr. Krebs continues to represent the Alabama Securities Commission in select matters.  He is recognized in The Best Lawyers in America for Securities Law.

CURRICULUM VITAE OF THOMAS L. KREBS
RELATING TO SECURITIES LAW PRACTICE AND LITIGATION
(Revised 2012)

I. General Background.
A. Thomas L. Krebs, was a partner in the firm of Haskell Slaughter Young & Rediker, LLC in Birmingham, Alabama from 1983 to December 2009. He is a graduate of the University of Virginia (BA, 1966) and the University of Alabama School of Law (1972). From December 2009 through Mid-December 2010, Mr. Krebs was on a leave of absence from Haskell Slaughter to take the position as the Assistant Director and Deputy General Counsel of the Financial Crisis Inquiry Commission, where he spearheaded the investigation of securitizations of mortgaged-backed securities, foreclosures and misrepresentations, Lehman Brothers, Bear Sterns and Shadow Banking, among other investigations. Mr. Krebs withdrew from the firm in 2011 to become senior counsel to the House Financial Services Committee (HFSC), appointed by Chairman Spencer Bachus, a law school classmate. During his time with HFSC, he interviewed prospective witnesses and conducted investigations in connection with hearings by the Oversight and Investigations subcommittee. He also conducted investigations on special projects as directed by the Chairman.

B. For the three-year period following graduation from the University of Virginia, Mr. Krebs was an officer in the United States Marine Corps serving in Viet Nam as a platoon commander, where he was twice decorated for heroism and meritorious service (Bronze Star with Combat “V”, the Navy Commendation Medal with Combat “V” and the Purple Heart Medal). Since graduation from law school in 1972, Mr. Krebs has specialized in a corporate and securities law practice.

C. In 1972, Mr. Krebs was employed as one of in-house counsel for Liberty National Life Insurance Company in Birmingham where he was responsible for compliance with securities laws and employment laws. In June 1975, Mr. Krebs became the Director of the Alabama Securities Commission, the Alabama agency having regulatory oversight of the securities laws in the State of Alabama. In his capacity as the Director, he represented the Securities Commission on numerous occasions before both federal district courts and circuit courts in Alabama. In this capacity, he argued several landmark cases before the Supreme Court of Alabama in which the Securities Act of Alabama received a broad and liberal interpretation. See Burke v. State, 385 So.2d 648 (Ala. 1980); Buffo v. State, 415 So.2d 1158 (Ala. 1982). Mr. Krebs also represented the Alabama Securities Commission in testimony before various committees of the State Legislature and the United States Congress.

In 1977, Mr. Krebs assisted in the drafting and reviewed legislation relative to requiring information on industrial revenue bond issues in Alabama to be filed with the Director of the Alabama Securities Commission (see Ala. House Bill 126, 2/1/77; Ala. House Bill 444, 5/29/75), and conducted public hearings on that proposed legislation. In 1981, Mr. Krebs was elected to the office of president of the North American Securities Administrators Association (NASSA), an organization composed of the securities regulatory agencies in the United States, including the District of Columbia, Guam and Puerto Rico, the Canadian securities regulatory agencies and the Securities Regulatory Agency of the County of Mexico. Prior to 1981, he served in a variety of positions with NASSA, including the first and second vice-president positions, treasurer and secretary. For several years, he was the Chairman of NASSA’s enforcement committee responsible for the coordination of multi-state securities fraud investigations. During his term as president of NASSA and while an officer of the association, Mr. Krebs often testified before U.S. Congressional Committees for the purpose of presenting the state securities regulators view of bills affecting the securities industry. Additionally, Mr. Krebs delivered several papers to the securities law enforcement committee on multi-jurisdictional cooperative investigations of securities violations.

In 1978, together with the Honorable Robert Morgenthau, the District Attorney for the County of New York, Mr. Krebs founded the Leviticus Project, a six-state, sixteen agency task force organized to investigate and prosecute crime in the coal industry. The Leviticus Project was and continues to be one of the finest state-to-state cooperative investigative programs in the United States.

Mr. Krebs often serves as an expert witness in securities law cases. In this capacity, he has testified in several landmark cases involving questions arising under the Securities Act of Alabama. See Upton v. Trinidad Petroleum Corporation, 468 F. Supp. 330 (N.D. Ala. 1979), aff’d, 652 F.2d 424 (5th Cir. Unit B Aug., 1981) and Foster v. Jessup & Lamont Securities, 759 F.2d 838 (11th Cir. 1985) (certifying questions to the Alabama Supreme Court, 482 So.2d 1201 (Ala. 1986).

In 1980, at the request of then Vice-President Elect, George H. Bush, Mr. Krebs co-authored the state liaison section of the Reagan Transition Team report on the SEC. In 1980 and 1981 at the request of the then director of the SEC’s Division of Enforcement, Judge Stanley Sporkin, Krebs was selected to be a member of the United States delegation to the World Securities Conferences. Mr. Krebs served as the Commission’s Director until August 1982, when he left the Commission to become a partner in the Birmingham, Alabama law firm of Burr & Forman.

In 1982, Mr. Krebs accepted and completed an engagement by the United States Agency for International Development to recommend a program of training for the Amman Financial Market, (the “AFM”), the securities regulatory agency for the Country of Jordan. Following a six week study of the Jordanian securities market, Mr. Krebs drafted a 108-page report which made specific training proposals for specified AFM personnel, together with a time table for the completion of that training. Copies of the study are available upon request.

In 1983, the governor of the State of Utah requested that Mr. Krebs consult with and advise his staff regarding the enactment of legislation and the staffing of the Utah Securities Division aimed at stopping the “penny stock” frauds which then plagued that state.

D. In 1986, Mr. Krebs taught a course in “Securities Regulation” as an Adjunct Lecturer at the Cumberland School of Law of Samford University in Birmingham, Alabama.

E. His securities work and experience since 1982 includes the preparation and filing of registration of public offerings of securities (both with the U.S. Securities and Exchange Commission of Form S-1 and other similar filings, with various federal bank regulatory agencies, and with numerous state securities commissions), private debt and equity placements, proxy solicitations, bank securities work, limited partnership private offerings, broker-dealer registrations, defense of broker-dealer disciplinary proceedings, mergers and other reorganizations, Investment Company Act registrations and reports, Investment Advisers Act registrations, and a wide variety of other “in-the-office” securities work. He has and does today represent persons in connection with SEC inquires and investigations.

F. Mr. Krebs co-authored the 1990 article on securities litigation published in the Cumberland Law Review, see “Securities Litigation in Alabama: Open shirts, gold chains and pinkie rings – a guide for widows and orphans,” Vol. 20, No. 3, p. 481 (1990). He has, under contract with Matthew Bender, edited the Blue Sky Fraud portions of the H. Sowards & N. Hirsch’s “Business Organization” (1989).

G. Mr. Krebs has lectured at numerous Alabama Continuing Legal Education (ACLE), American Bar Association, North American Securities Administrators Association and similar continuing education seminars for attorneys, accountants, securities regulators and/or investment bankers, primarily on the topics of securities litigation and the duties, responsibilities and liabilities of professionals under state and federal securities laws and similar laws. H. Mr. Krebs has been admitted to practice before the Supreme Court of Alabama, the Supreme Court of the United States, the Fifth and Eleventh U.S. Circuit Courts of Appeal, the United States District Courts for the Northern and Middle Districts of Alabama, and, on a pro hac vice basis, in numerous federal district courts in several states (including, without limitation, federal courts in Georgia, Nevada, Wisconsin and Virginia).

I. Mr. Krebs is a member of the American Bar Association, the Alabama State Bar, the Birmingham Bar Association and the Public Investors Arbitrations Bar Association.

II. Significant Cases in which Krebs or His Firm has Appeared As Counsel.
In addition to the foregoing, Mr. Krebs or his firm has served as counsel of record in the following securities litigation matters since May 1990 (as counsel for plaintiffs and class members, and, from time to time, on behalf of defendants in class actions, many of which cases involve securities matters):

A. Representation of Brokers, Dealers and Underwriters. Mr. Krebs and his firm serve and have served as general counsel to a number of NASD-member and state-licensed broker-dealers, and represent NYSE member firms in a variety of matters.

B. Listed below is a representative sampling of securities actions in which Mr. Krebs has appeared as Counsel:

1. Alabama Securities Commission, et al. v. Greater Ministries, Inc. et al.; CV-99-JM-1786-M (M.D.Fl.);

2. Ayers v. Sutliffe (First Humanics Litigation), C.1-90-650 and Randolph County Fed Sav. & Loan v. Sutliffe, (S.D.Ohio)(Rubin, J.)(lead class counsel for 21 member plaintiff class action brought on behalf of approx. 4,000 purchasers of 21 separate municipal bonds issued over a 3 ½ year period to finance the acquisition of 21 existing nursing homes; jury verdict against Deloitte & Touche accounting firm an other defendants after seven week trial fro twelve counts each of securities fraud, RICO and common law fraud; one of the first cases in the United State to use novel “paperless trial” techniques to display all documentary exhibits, all deposition transcripts, and all videotaped testimony and evidence, on computer and large screens throughout the courtroom; Settled after the Deloitte & Touche trial with all defendants, including PriceWaterhouse, for over $46 million; see Randolph County Federal S&L v. Sutliffe, [current Transfer Binder] Fed.Sec.L.Rep ¶ 96,548 (S.D.Ohio 1991) and Ayers v. Sutliffe, [current Transfer Binder] Fed.Sec.L.Rep ¶ 96,552 (S.D.Ohio 1992); See “Reach for the Sky,” Forbes, August 17, 1992. See also numerous articles reported in the Kansas City Business Journal and The Bond Buyer; see related magazine article, “Money Helps,” Money, April 1992.

3. Florence R. Hosea et al. v. The Managers Funds et al.; Civil Action No. 394 CV-01650 AHN (D.Conn.)(co-lead class counsel for class of purchasers of Managers Funds Intermediate Mortgage Fund);

4. Hynes v. The Enstar Group, Inc et al.; CV-90-T-1204-N (M.D.Ala.)(Clemon, J.)(co-lead class counsel in action filed on behalf of purchasers of publicly sold Enstar stock alleging that Stock price was artificially inflated as a result of defendants’ failure to disclosure kickbacks from Drexel Burham and Michael Milken given to officers of the company so that Enstar would buy Drexel junk bonds, which would create the appearance of a market in such bonds and permit Drexel and Milken to manipulate the price of such bonds); Settled for $19.3 million of cash;

5. In re Mineral Corporation Securities Litigation Republic, No. MDL 686 (D.Nev.)(Federal and state securities fraud claims in connection with the sale of fractional undivided working interest in oil and gas leases);

6. Mutual Savings Life Insurance Co. et al. v. James River Corp et al.; In the Circuit Court of Morgan County, Alabama, a class action on behalf of the purchasers of $250 million of corporate bonds refinanced in a STAC transaction. See “James River, Merrill Are Sued on Refinancing,” The Wall Street Journal, page A5B, September 2, 1994;

7. State of Wisconsin Investment Board et al. v. Harold Ruttenberg et al. (In re Just For Feet Securities Litigation); CV-99-BU-3097;

8. The Employees Retirement System of Alabama et al. v. The May Department Stores Company; In the Circuit Court of Montgomery County, Alabama; (lead counsel on behalf of a group of institutional holders of corporate bonds including the Alabama Retirement Systems, the California Public Employee Retirement System, the New York State Common Retirement Fund and similar funds of the States of Washington and Montana, as well as insurance companies, mutual funds and other investors for wrongful redemption. Settled for $28 million of cash. See “Corporate Issuers Use Bluff-and-Threat Call Gambit,” The Wall Street Journal, November 2, 1992; “May Stores Named in Suit on Bond Calls,” The Wall Street Journal, December 15, 1992; “STACKed Deck—Bondholders Get Tough Over Tender Deal,” by Benjamin J. Stein, Barron’s, June 21, 1993 at pp. 14-15; “STACing the Deck on Bondholders,” Corporate Finance, June 1993 at pp. 26-29; and numerous other articles pertaining to refunding of “nonrefundable” bonds;

9. The Retirement Systems of Alabama et al. v. Merrill Lynch & Co., et al. (In re Enron Corporation Securities Litigation); CV-03-H-2308; Settled for approx. 90% recovery;

10. The Retirement Systems of Alabama et al. v. J.P. Morgan Chase & Co., et al. (In re WorldCom Securities Litigation); CV-02-1947-PR; Settled for approx. 90% recovery; and

11. The South Carolina National Bank et al. v. C.D. Stone et al.; CV 7:88-79117 (class counsel filed on behalf of bondholder class; $16 million issue of bonds (in default) to finance construction and operation of an assisted care retirement faculty; partial settlements to date of approx. $4 million.

References:
Judge Stanley Sporkin

Robert Morgenthau Esq., Former District Attorney for New York County, New York.

Joseph P. Borg, Director, Alabama Securities Commission

Dr. David G. Bronner, Executive Director, Retirement Systems of Alabama.

Congressman Spencer Bachus (R.Ala)

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