Litigation partner Katherine J. Stoller is an experienced white-collar defense lawyer who has handled complex criminal and regulatory investigations and resolutions for leading businesses around the world. Katherine has represented global banks in resolving multifaceted cross-border investigations that present uniquely challenging legal and operational issues. Katherine also has deep experience in defending civil securities fraud claims and representing parties in big-ticket commercial litigation.  

Katherine’s practice focuses on the representation of corporations, financial institutions and individuals in investigations involving allegations of securities fraud, bank fraud, money laundering, economic sanctions violations, price fixing, accounting fraud, insider trading and the False Claims Act. She has represented companies and individuals under investigation by enforcement authorities including the U.S. Department of Justice, the Securities and Exchange Commission, the Federal Reserve and the Office of Foreign Assets Control. She frequently represents financial institutions in parallel regulatory and criminal investigations. 

Conducting and overseeing corporate internal investigations is a cornerstone of Katherine’s practice. She is skilled at resolving the many legal, regulatory and technical issues arising in fact-finding for global concerns operating under close regulatory supervision. Katherine frequently advises boards of directors and special committees overseeing government and internal investigations.

Katherine also represents clients in a wide range of civil litigation, including securities fraud and complex commercial disputes. She has extensive experience representing clients located outside the United States in cross-border litigation.

Katherine has been recognized by Chambers USA for White-Collar Crime and Government Investigations, The Legal 500 for International Litigation, Euromoney Legal Media Group for White Collar Crime, and was shortlisted as White Collar Crime Lawyer of the Year by the International Financial Law Review’s Women in Business Law Awards (2023). Chambers USA sources describe Katherine as an attorney who “brings incredible expertise, manages huge matters and is very good and strong.”

Katherine is Co-Chair of the ShearmanWomen Council and a member of the firm’s Women Partners Committee.

White Collar Criminal Defense, Regulatory Enforcement and Internal Investigations

• Copenhagen-based Danske Bank A/S in investigations by DOJ, the SEC, and Danish criminal authorities arising from its former Estonian branch, resulting in a USD 2 billion global settlement. This high-profile case, with media coverage of extensive alleged money laundering activity, was resolved without money laundering charges.
• Deutsche Bank in the investigation and resolutions with the New York State Department of Financial Services and the Federal Reserve relating to anti-money laundering compliance in its Moscow office.  No DOJ charges were brought.
• UniCredit in connection with compliance obligations arising from its settlements with DOJ, the District Attorney of New York County, the Federal Reserve, OFAC and the New York State Department of Financial Services, following global resolution of U.S. economic sanctions charges
• Numerous financial institutions and companies in cross-border investigations relating to money laundering, BSA/AML compliance, and sanctions violations, including in connection with Russia and the Baltics
• Wachovia Bank in the investigation and resolution with DOJ, FinCEN, and the OCC related to anti-money laundering compliance in Wachovia’s correspondent banking business
• Fiat Chrysler Automobiles N.V. and FCA US LLC in resolving an SEC investigation of sales reporting practices
• Major financial institution in multiple internal investigations related to control failures and regulatory interactions
• Consumer-facing tech company in a DOJ fraud investigation, resulting in a declination
• Global investment bank in connection with SEC and FINRA inquiries into underwriting practices
• Global financial institution in connection with a price-fixing investigation
• Secured a declination from the SEC on behalf of a company and its CEO in connection with an insider trading investigation
• Global financial services firm in a False Claims Act investigation in which the government declined to intervene

Securities and Complex Commercial Litigation

• Nomura Holding America Inc. in a securities action brought by the Federal Housing Finance Agency concerning Freddie’s and Fannie’s purchase of RMBS before the financial crisis. Defended Nomura in four-week bench trial in the U.S. District Court for the Southern District of New York, in one of the only financial crisis securities litigations to go to trial
• Philips in a successful bench trial before the Delaware Court of Chancery involving contractual, fraud and corporate law claims by an Italian investor under the laws of Italy, the Netherlands and Delaware pertaining to a €200 million loan to a third-party company
• Goldman Sachs in a series of litigations brought by various companies alleging that they manipulated the market for those companies’ stocks by intentionally failing to deliver shares sufficient to settle short positions entered into by the defendants’ clients
• Porsche in obtaining the dismissal of federal securities claims (affirmed by the U.S. Court of Appeals for the Second Circuit) seeking more than $2.5 billion arising out of its takeover bid for Volkswagen; also represented the client in obtaining the dismissal, on appeal, of parallel claims brought in New York State Court
• A prominent family office, in litigation arising out of a Ponzi scheme

Professional Affiliations

• Trustee, Practising Law Institute
• Board Member, City Bar Fund (New York City Bar)
• Member, The American Law Institute

Speaking Engagements

• “The Nexus of Disputes, Enforcement and Crypto,” Shearman & Sterling Digital Finance Summit (November 15, 2022)
• “Anti-Money Laundering Compliance & Investigations,” Nardello & Co. Risk Advisory & Compliance Summit, Copenhagen, Denmark (October 6, 2022)
• “Navigating the Russian Sanctions Regime,” LexisNexis (March 24, 2022)
• “The Balancing Act: Motherhood and Firm Life,” Columbia Law Women’s Association (February 16, 2022)
• “U.S. White Collar Criminal Law,” Université Paris I – Panthéon Sorbonne (December 8, 2021)
• “When Controls Fail: Hard Lessons Learned from Bank Enforcement Actions,” Shearman & Sterling LLP (December 7, 2021)
• “The U.S. Anti-Money Laundering Act of 2020: Strengthening AML Enforcement Abroad While Closing Loopholes at Home,” Bahamas Financial Services Board (June 8, 2021)
• “The Outlook for Russia,” Trade Association for the Emerging Markets (May 13, 2021)
• “Best Practices in Internal Investigations – The Legal Perspective for CFEs,” Practising Law Institute (April 16, 2021)
• “Sanctions Regime: Implementing OFAC Requirements and Magnitsky Legislation,” LexisNexis (March 19, 2021)
• “Update on EM Sanctions,” Trade Association for the Emerging Markets (March 18, 2021)
• “Risk Assessments and Implementing a Compliance Program/ Money Laundering and Sanctions,” University of Miami School of Law (June 9, 2020)
• “Global Reach: Recent Developments in Cross-Border Investigations of Financial Institutions,” Practising Law Institute (April 2, 2020)
• “AML and OFAC/Sanctions Enforcement Update,” Financial Crimes Enforcement, Compliance & Risk Mitigation Conference (February 19, 2020)

Publications

• “Witness Interviews in Internal Investigations: The US Perspective,” Global Investigations Review (January 4, 2023
• “Latest Ripple Development Highlights SEC’s Crypto Approach,” Law360 (October 5, 2022)
• “Navigating the regulatory web of Russia sanctions,” The Banker (September 29, 2022)
• “Conducting Internal Investigations: Avoiding Common Legal Pitfalls,” PLI Chronicle (July 16, 2021) 

Awards & Accolades

• Shortlisted as White Collar Crime Lawyer of the Year by the International Financial Law Review’s Women in Business Law Awards (2023)
• Recognized by Chambers USA for White-Collar Crime and Government Investigations
• Recognized by The Legal 500 for International Litigation
• Recognized by Euromoney Legal Media Group as a “Rising Star” in White Collar Crime (2021, 2022)