United States Ninth Circuit

The district court's orders in a civil enforcement action brought by the Securities and Exchange Commission against numerous defendants allegedly involved in a scheme to sell unregistered securities of defendant company in violation of Section 5 of the Securities Act of 1933 is: 1) reversed in part, as to the grant of summary judgment against defendant transfer agent and its owner because there was a material issue of fact regarding whether said defendants were necessary participants and substantial factors in the distribution of defendant company's stock sufficient to impose liability under Section 5 of the Securities Act of 1933; but 2) affirmed in part, as to the denial of the motion of defendant Dvorak, defendant company's attorney at the time of scheme, to stay the proceedings, and the district court's disgorgement order as to defendant Dvorak.

Appellate Information

• Decided 09/10/2013
• Published 09/10/2013

Judges

• TUNHEIM

Court

• United States Ninth Circuit

Counsel