Tag: Control Person

Arbitration Hearing
Compliance

Control and Associated Person Status of Foreign BD

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 […]

Case Law Law Securities Law Dictionary

Control person liability requires culpable participation.

seclaw.com/glossary/control-person/” data-gt-translate-attributes='[{“attribute”:”data-cmtooltip”, “format”:”html”}]’>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 […]