9th Circ. Finds Middleman Not Liable In $64M Stock Scam

Law360, Los Angeles (September 10, 2013, 5:09 PM EDT) -- The Ninth Circuit on Tuesday partially reversed a district court’s decision to hold 1st Global Stock Transfer LLC and its owner responsible for a scam that lost investors in CMKM Diamonds Inc. $64 million.

The three-judge panel found there was material evidence to suggest that 1st Global and its owner, Helen Bagley, hadn’t participated in the scam — which sold billions of fake securities backed by fake diamond mining, buying and selling — when they transferred hundreds of billions of shares of stock.

The panel affirmed...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.