Supreme Court takes SEC's side in securities-fraud case
By a 6-to-2 vote, the Supreme Court ruled in favor of the Securities and Exchange Commission in a case testing whether someone who is not a "maker" of a misstatement can be found to have violated Rule 10b-5. Francis Lorenzo, while the director of investment banking at an SEC-registered brokerage firm, sent two e-mails to prospective investors that his boss supplied describing assets in a company he knew were inflated.
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