Judge Rules Against SEC In Pay-To-Play Case

Law360, New York (May 7, 2007, 12:00 AM EDT) -- In a decision that could have implications for the U.S. Securities and Exchange Commission’s new municipal securities initiative, an administrative law judge has ruled against the Commission in an action brought over an alleged pay-to-play scheme.

Administrative Law Judge James T. Kelly on Thursday ruled in favor of defendants Charles LeCroy and Anthony Snell in a case filed by the SEC over a consulting agreement that allegedly violated Municipal Securities Rulemaking Board Rule G-38.

The SEC had alleged that former JP Morgan brokers LeCroy and Snell...
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