SEC Prevails In Suit Over Analyst Conflict Of Interest

Law360 (November 17, 2005, 12:00 AM EST) -- A federal jury has found a former research analyst liable for deceiving investors and the media by giving financial advice on companies he secretly held stock in.

The Securities and Exchange Commission sued Paul E. Johnson in January 2003, accusing the former managing director at defunct broker-dealer Robertson Stephens Inc. of misleading investors with fraudulent research reports. The complaint was filed in the U.S. District Court for the Southern District of New York.

The jury found Johnson failed to disclose his interest in Redback Networks, Inc.,...
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