Judge Whittles Claim From SEC's Suit Over CDO Fraud

Law360, New York (October 27, 2011, 11:20 PM EDT) -- A New York judge on Thursday filed an order trimming civil fraud claims against a GSC Group Inc. executive accused of letting a hedge fund choose risky securities for a collateralized debt obligation that led to JPMorgan Chase & Co.'s $154 million settlement with regulators.

In an order issued from the bench Monday and filed Thursday, U.S. District Judge Miriam Goldman Cedarbaum dismissed the U.S. Securities and Exchange Commission's claim under section 17(a)(3) of the Securities Act in its suit against Edward S. Steffelin, the head...
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