10th Circ. Backs Fraud Judgment For Stock Promoter

Law360, New York (April 14, 2010, 1:19 PM EDT) -- Rejecting claims that online statements were mere puffery, a federal appeals court has found a stock promoter liable for securities fraud in promoting an Internet pump-and-dump scheme for short-lived golf club manufacturer Freedom Golf Corp.

The U.S. Court of Appeals for the Tenth Circuit affirmed Tuesday the district court's judgment, holding that Jonathan Curshen defrauded investors when he posted 35 anonymous Internet messages touting Freedom Golf without disclosing his ties to the company and promoting a sanguine investor report he knew to be inaccurate.

Curshen challenged...
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