SEC Can Pursue GlobeTel Fraud Claims: Judge

Law360, New York (November 13, 2008, 12:00 AM EST) -- The U.S. Securities and Exchange Commission can pursue securities fraud claims against aerospace communications company GlobeTel in connection with an alleged scheme by the company’s former employees to inflate revenues, a federal judge has ruled.

Judge Joan A. Lenard issued a decision Wednesday in the U.S. District Court for the Southern District of Florida denying GlobeTel Communication Corp.’s motion to dismiss the securities fraud claims against it and ordering the company to file an answer to the SEC’s complaint within 10 days.

“It cannot be legitimately...
To view the full article, register now.