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Aiding and Abetting Securities Violations

July 20, 2015

SEC v. Apuzzo

When we think about third party liability in securities violations, we tend to think service providers (e.g., lawyers, accountants, or brokers) that somehow participated in preparation of false or misleading statements in connection with the sale of securities.  While that is certainly true in many cases, it is not always the case.  Here’s a case in point showing how a third-party business partner can be liable.

In SEC v. Apuzzo,[1] United Rentals, Inc. (“URI”) engaged in fraudulent sale-leaseback transactions whereby it sold used equipment to General Electric Credit Corp.… Read the rest

Aiding and Abetting Securities Violations

July 18, 2015

Can I Be Liable for Somebody Else’s Wrongdoing?:  Aiding and Abetting Liability in Securities Law Violations

The Dodd-Frank Amendment

The financial crisis and the ensuing economic downturn of the past few years prompted a series of reforms aimed at improving regulation of the financial industry.  The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, in particular, amended the Securities Exchange Act of 1934 to permit the SEC to bring an action for aiding and abetting a securities law violation. … Read the rest

All postings are intended to be planning tools to familiarize readers with some of the high-level issues discussed therein. No posting is intended to be a comprehensive discussion and additional details should be discussed with your transaction planners including attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. This article should not be treated as legal advice to any person or entity.