Cliff Histed represents companies and individuals operating in highly-regulated industries, including in the areas of financial markets and health care, during both criminal and regulatory proceedings, and in representing clients in litigation and at trial.
Cliff is a former supervisory federal prosecutor, supervisory enforcement lawyer with the Commodity Futures Trading Commission, and special agent with a federal Inspector General’s Office. He has 30 years’ experience investigating, prosecuting, and defending business frauds and criminal offenses in regulated industries, including the securities markets, the agricultural and financial futures markets, and health care. He has supervised more than a dozen assistant U.S. attorneys in their investigation and trial of criminal fraud cases, and has tried 27 jury and nonjury cases, both criminal and civil, in federal and state courts. He has briefed eleven matters before the Second and Seventh Circuit Courts of Appeals, and argued eight of those appeals. He is a member of the K&L Gates Trial Academy and is a member of its steering committee.
Cliff has conducted or supervised hundreds of investigations and prosecutions, including those involving allegations of bribery, embezzlement and internal fraud, trade secret theft, obstruction of justice, and trading offenses such as insider trading, price manipulation in agricultural and energy futures markets, wash sales, and abusive forms of high-frequency trading, including the case U.S. v. Michael Coscia, the first case to charge the disruptive trading practice known as “spoofing” as a crime. Many of these investigations involved parallel proceedings brought by federal regulatory agencies, futures exchanges, bankruptcy trustees, or private litigants.
Cliff speaks and writes frequently on the topic of futures and securities trading, and on regulation of cryptocurrencies. Notable publications that have quoted him include Bloomberg News, Chicago Lawyer, Crain’s Chicago Business, Law360, Institutional Investor, Forbes, Fortune, and the New York Times.
Cliff has a very active pro bono practice, and has provided legal services to the Illinois Torture Inquiry and Relief Commission and Clemency Project 2014. He is a member of the Criminal Justice Act Panel for the U.S. District Court for the Northern District of Illinois which provides representation to indigent clients charged with federal criminal offenses.
Cliff's career includes the following public and private sector organizations:
- U.S. Attorney’s Office, Northern District of Illinois (June 2006—January 2015). Deputy Chief, Securities and Commodities Fraud Section (April 2014—January 2015); Deputy Chief, Financial Crimes and Special Prosecutions Section (July 2011—April 2014).
- BP America, Inc. (July 2004—June 2006). Worked in both the compliance and law departments directly on the trading floor, providing regulatory advice concerning exchange-traded and over-the-counter derivatives to BP’s energy commodity traders.
- Commodity Futures Trading Commission (August 2000—July 2004). Supervisory Trial Attorney/Team Leader June 2002—July 2004. Investigated and prosecuted civil violations of the Commodity Exchange Act and CFTC regulations, including conducting preliminary injunction hearings, taking depositions, and arguing motions in district courts across the country.
- Illinois Attorney General’s Office (November 1995—August 2000). Assistant Attorney General, Financial Crime Unit. Prosecuted criminal fraud and official misconduct cases across the State of Illinois.
- Office of Inspector General, U.S. Department of Education (August 1989—November 1995). As a Special Agent, Mr. Histed investigated criminal fraud against federal government programs. He is an honor graduate of both the nine-week special agent course, and the three-week Inspector General Basic Training Program, at the Federal Law Enforcement Training Center.
- American Bar Association
- Business Law Section—Derivatives and Futures Law/White Collar Crime Committees
- Criminal Justice Section—Computer Crime, Intellectual Property, and Trade Secrets/White Collar Crime Committees
- Federal Bar Association, Chicago Chapter (Member, Board of Directors)
- Chicago Bar Association
- Futures Industry Association
- Securities Industry and Financial Markets Association
- Digital Currency and Ledger Defense Coalition
- Moderator, “Enforcement and Litigation Developments” Panel, featuring speakers from the U.S. Department of Justice, Commodity Futures Trading Commission, CME Market Regulation, and K&L Gates, K&L Gates Chicago Investment Management Conference, November 14, 2019.
- Moderator, “Trading on Misappropriated Information: Enforcement Risks and Mitigation Strategies” Panel, featuring speakers from the U.S. Department of Justice, Commodity Futures Trading Commission, and CME Market Regulation, Annual Seminar of the Chicago Bar Association’s Futures & Derivatives Committee, June 7, 2019.
- “Regulation of Cryptocurrencies and ICOs,” K&L Gates Chicago Investment Management Conference, November 13, 2018.
- “Hot Topics in Securities and Futures Examinations and Enforcement and CPO and CTA Update,” K&L Gates Chicago Investment Management Conference, November 13, 2018.
- “Trade Secrets and Trading Firms: What You Need to Know,” 10th Annual Conference on Futures and Derivatives, IIT Chicago-Kent College of Law, Chicago, November 1, 2018.
- “Grabbing and Keeping the Jury’s Attention,” K&L Gates Trial Academy Presentation, Chicago, August 3, 2018.
- Moderator, “Enforcement Update” Panel, featuring speakers from the U.S. Department of Justice, Commodity Futures Trading Commission, and from private practice, Annual Seminar of the Chicago Bar Association, Futures and Derivatives Committee, June 8, 2018.
- Moderator, “Enforcement Actions” Panel, featuring speakers from the U.S. Department of Justice, Commodity Futures Trading Commission, and from private practice, American Bar Association Blockchain Technology, Digital Currency, and ICO Institute, New York, April 27, 2018.
- “Cryptocurrency Litigation,” K&L Gates Presentation (with co-presenter Desiree Moore), Orlando, April 23, 2018.
- “Application of the DTSA by the Courts and Criminal Prosecution of Trade Secret Theft,” (with co-presenter Gina Jenero) K&L Gates General Counsel University Program, Chicago, April 4, 2018.
- “Insider Trading: Valuable Tips From the Bar and Bench,” American Bar Association Event, Chicago, March 21, 2018.
- Moderator, “District Judges Round Table,” Program of the Federal Bar Association, Chicago Chapter, February 27, 2018.
- “FinTech and Trading and Investing in Cryptocurrencies and Tokens,” K&L Gates Chicago Investment Management Conference, January 31, 2018.
- “Hot Topics in Enforcement and Examinations,” K&L Gates Chicago Investment Management Conference, January 31, 2018.
- “Cryptocurrencies: What are the SEC and CFTC Doing in This Space?," Chicago Bar Association, Joint Meeting of the Futures & Derivatives and Securities Committees (with co-presenter John Ruark), December 14, 2017.
- “Crossing the Line: When do Cryptocurrencies and Initial Coin Offerings Become Regulated Securities or Commodities? (And what if you’ve already launched your ICO?),” Money 20/10, Las Vegas, 23 October 2017.
- “What to do When the U.S. Government Comes Knocking,” K&L Gates Presentation and Webinar, Phoenix, 25 Apri 2017.
- “Issues in Futures Exchange Enforcement and Compliance,” K&L Gates / EY Looking Over the Horizon Energy Trading Conference, Houston, 18 April 2017.
- “SEC, CFTC, NFA and FINRA - Examinations and Enforcement,” K&L Gates Chicago Investment Management Conference, 26 April 2017.
- “Criminal Enforcement in the Financial Markets,” Chicago Bar Association, Futures and Derivatives Committee, 18 January 2017.
- “Cybersecurity, Organized Crime & Other Evolving Threats: Info Sharing as a Potential Solution,” Money20/20, Las Vegas, 23 October 2016.
- “Ethical Issues in Representing Clients Who Testify in Regulatory Investigations” and “Criminal Spoofing,” Annual Seminar of the Chicago Bar Association, Futures and Derivatives Committee, 10 June 2016.
- “The Rising Tide in Health Care Criminal Investigations,” K&L Gates Webinar, 21 January 2016.
- “Case Studies in Disruptive Trading Practices,” Futures Industry Association Expo 2015, Chicago, 5 November 2015.
- “Regulatory Risks for Futures Traders – Chicago and Beyond,” Chicago Bar Association, Futures and Derivatives Committee, 16 September 2015.
- “Regulatory Issues in Hedging and Trading Energy Derivatives,” Power-Gen Natural Gas Conference, Columbus, Ohio, 19 August 2015.
- “Enforcement Panel Update,” 6th Annual Conference on Futures & Derivatives, IIT Chicago-Kent College of Law, October 17, 2014.
- “Putting Markets Under the Microscope: Trends in Securities and Commodities Fraud Enforcement,” American Bar Association E event, Chicago, July 22, 2014.
- “CFTC Regulatory and Enforcement Report: 2019 Activity and Outlook,” The Investment Lawyer, January 2020
- How To Authenticate Social Media Evidence In Court, Law360, 28 June 2019
- “Section 2. Commodity Exchange Act and CFTC Regulation, Digital and Digitized Assets: Federal and State Jurisdictional Issues,” American Bar Association Derivatives and Futures Law Committee, Innovative Digital Products and Processes Subcommittee, Jurisdiction Working Group, March 2019
- “Breaking Down The 2nd Criminal Spoofing Trial: Part 2,” Law360, 12 June 2018
- “Breaking Down The 2nd Criminal Spoofing Trial: Part 1,” Law360, 11 June 2018
- “The Spoofing Statute Is Here To Stay,” Law360, 11 August 2017
- “Spoofing Sentence Sends Clear Enforcement Message,” Law360, 13 July 2016
- “A Look At The 1st Criminal 'Spoofing' Prosecution: Part 2,” Law360, 21 April 2015
- “A Look At The 1st Criminal 'Spoofing' Prosecution: Part 1,” Law360, 20 April 2015
- Interview, “Q&A: The Future of Insider Trading and High-Frequency Trading Prosecutions,” Levick, 12 April 2016