United States Ninth Circuit

A petition for review of the Securities and Exchange Commission's Order upholding a variety of fines and sanctions against petitioners for violating Sections 5(a) and 5(c) of the Securities Act of 1933, which prohibit the sale or offer of a security without filing a registration statement, is denied, where: 1) substantial evidence supported the Commission's finding that petitioners violated Sections 5(a) and 5(c) of the 1933 Securities Act; 2) petitioners did not meet their duty of inquiry necessary to claim the Section 4(4) brokers' exemption; and 3) deference to the Commission's discretionary determination as to the appropriate fines and sanctions is appropriate because they were within the Financial Industry Regulatory Authority's guidelines and were supported by the evidence in the record.

Appellate Information

• Decided 01/16/2014
• Published 01/16/2014

Judges

• GOULD

Court

• United States Ninth Circuit

Counsel