The Law of the Financial Markets from Top Securities Lawyers
Saturday, April 20, 2024
Control, and therefore associated person status, lacking SEC v. Zahareas, No. 00-3047 (8th Cir., 11/29/01): The SEC failed to show that a foreign broker-dealer was “controlled by” and, therefore, an “associated person” of a U.S. broker-dealer. In 1993, the SEC brought a civil enforcement action against Nicholas Zahareas, the president […]
Control person liability does not lie unless the controlling person was, in some meaningful sense, a culpable participant in the fraud. General deficiencies in supervision, are insufficient, liability requires culpability regarding specific trades and misrepresentations. Wallace v. Buttar, 02 Civ. 4297(RWS) (S.D.N.Y. 1/8/03). Appealability * Award Challenge * Vacatur of […]
