United States First Circuit
Securities and Exchange Comm'n v. Tambone, 071384
In an enforcement action brought by the SEC for securities fraud, judgment dismissing SEC's complaint is reversed where: 1) defendants may be held primarily liable for using false or misleading fund prospectuses to sell mutual fund shares under Section 17(a)(2) of the Securities Act of 1933 ("section 17(a)(2)") and Section 10(b) of the Exchange Act of 1934; 2) the scope of conduct encompassed by section 17(a)(2)'s prohibition on obtaining money or property "by means of" any untrue statement of material fact may, in certain circumstances, be broader than Rule 10b-5(b)'s prohibition against "making" an untrue statement; however, 3) plaintiff-SEC's second complaint alleged with sufficient particularity violations of both prohibitions by defendants, as well as aiding and abetting violations.
Appellate Information
- Decided 12/03/2008
- Published 12/03/2008
Judges
Court
- United States First Circuit