Supreme Court Considers Who Bears Responsibility for Security Fraud

Supreme Court Considers Who Bears Responsibility for Security Fraud
The Supreme Court of the United States in Washington on June 27, 2018. Samira Bouaou/The Epoch Times
Matthew Vadum
Updated:

An investment banker who sent deceptive emails dramatically overstating the financial health of a failing clean energy company shouldn’t be held responsible for securities fraud because he was only following his supervisor’s directions, the man’s attorney told a skeptical Supreme Court.

U.S. securities laws forbid those offering securities for sale from making false statements or participating in fraudulent schemes. Whether a person who merely passes the bad information along is legally liable is at issue in this case.