SEC v. Frohling

(United States Second Circuit) – In a case in which defendant was found liable for securities laws violations sections 5 and 17(a) of the Securities Act of 1933, 15 U.S.C. sections 77e, 77q(a), section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. section 78j(b), and Rule 10b-5 there under, 17 C.F.R. section 240.10b-5, in connection with false opinion letters defendant wrote or approved to enable impermissible public offerings of unregistered shares of stock of defendant, the district court’s grant of summary judgment to the SEC is affirmed over defendant’s principal contention that the district court erred in ruling that there was no genuine issue to be tried as to his knowledge of the falsity of the letters.