10th Circuit, at Oklahoma City University, Discusses Utah Securities Fraud

Article excerpt

A 10th U.S. Circuit Court of Appeals panel on Thursday heard arguments in Oklahoma City in a Utah case centering on whether the man who drew up a document sent to the U.S. Securities and Exchange Commission bears any liability in the agency's action against an offshore securities boiler room operation.

The case, SEC v. Wolfson, sparked discussion of the U.S. Supreme Court's recent decision in Stoneridge Investment Partners v. Scientific Atlanta, in which the high court held that investors cannot sue third parties in securities fraud cases if they did not rely upon the acts of these secondary actors in making investment decisions. Just this week the court declined to hear an appeal on related issues in an Enron stockholder case.

The three judges heard several cases in the Homsey Family Courtroom at the Oklahoma City University School of Law. The event was one of several this week leading up to today's investiture of Robert Henry as the 10th Circuit's chief judge.

Henry is a former Oklahoma legislator and attorney general.

Thursday's case was part of a wider SEC enforcement action against 21 individuals and entities involved in what the agency alleged was a $16 million fraudulent stock sale scheme targeting more than 1,000 foreign investors.

California attorney Richard Weed represented Jon R. Marple, who the SEC contends bears some liability in the case for preparing an SEC filing for one of the firms involved in the operation.

Weed told Judges William Holloway, Carlos Lucero and David Ebel that the company, F10 Oil and Gas Properties, is rightfully responsible for misrepresentations in filings made on its behalf. …


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