Appeal Vindicates SEC Over Definition Of Securities

Law360, New York (April 5, 2007, 12:00 AM EDT) -- In a victory for the U.S. Securities and Exchange Commission, a federal appeals court has reversed a lower court ruling that snubbed the agency’s definition of securities and derailed its fraud suit against a purchaser of credit card debt.

In a decision issued Wednesday, the U.S. Court of Appeals for the Eleventh Circuit said the federal court for the Northern District of Georgia had erred in ruling that investment contracts in a small Tennessee company were beyond the SEC’s reach.

The SEC sued Merchant Capital LLC...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.