Judge Blasts SEC For Pursuit Of Merchant Fraud Suit

Law360, New York (July 29, 2009, 4:40 PM EDT) -- In a final opinion shuttering the case, a federal judge has criticized the U.S. Securities and Exchange Commission for relentlessly pursuing fraud claims against the “reasonable business” of Merchant Capital LLC while ignoring issues such as the Bernard L. Madoff scandal.

Judge Marvin Shoob of the U.S. District Court for the Northern District of Georgia on Tuesday closed the lid on the long-standing lawsuit, partially granting judgment to both parties and rebuffing the SEC for how it handled the case.

“After nearly seven years of litigation...
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