Securities regulation : cases and materials / by John C. Coffee, Jr., Hillary A. Sale.
2012
KF1439 .J46 2012 (Map It)
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Details
Author
Title
Securities regulation : cases and materials / by John C. Coffee, Jr., Hillary A. Sale.
Published
New York : Foundation Press/Thomson Reuters, 2012.
Call Number
KF1439 .J46 2012
Edition
Twelfth edition.
ISBN
9781609301163
1609301161
1609301161
Description
l, 1,630 pages ; 27 cm.
System Control No.
(OCoLC)808111444
Note
Previous edition: 2009.
Bibliography, etc. Note
Includes bibliographical references and index.
Series
Record Appears in
Added Author
Table of Contents
Preface to Twelfth Edition
iii
Table of Cases
xxix
pt. I
THE CAPITAL MARKETS: AN OVERVIEW
ch. 1
The Institutional and Regulatory Framework
1
1.
The Goals of Securities Regulation
1
2.
An Overview of the Financial Markets
9
A.
The Structure of the Financial Markets: An Overview of the Non-Equity Markets
11
B.
The Equity Markets
26
1.
The Venture Capital Market
27
2.
The Public Equity Markets: Redefining the Role of Exchanges
29
3.
The Forces Reshaping the Securities Markets
39
A.
The Rise of Institutional Investors
39
B.
Globalization: Causes and Consequences
44
C.
Restructuring of the Financial Services Industry: Deregulation and Reconsideration
48
D.
The Problem of Systemic Risk
51
4.
The Regulatory Framework
54
pt. II
REGULATION OF THE DISTRIBUTION OF SECURITIES
Subdivision A
The Underwriting Process Under the Securities Act Of 1933
ch. 2
The Basic Structure and Prohibitions of the Securities Act
96
1.
The Statutory Framework-
96
2.
The Pre-Filing Period ("Gun Jumping")
98
A.
Preliminary Negotiations Between Issuer and Underwriter
99
B.
The Traditional Dividing Line Between Pre-Filing Sales Publicity and Timely Disclosures of Corporate Information
101
Securities Act Release No. 5180
106
C.
Downsizing the Quiet Period: The SEC's Revised Rules
108
D.
Broker-Dealer Activities During Registration
110
E.
The Problem of Biased Research
111
3.
The Waiting Period
114
A.
The Traditional Offering Documents
115
B.
The Free Writing Prospectus
121
C.
Road Shows and Electronic Communications
123
3.
The Waiting Period---Continued
114
D.
Delivery During the Waiting Period
126
Securities Act Release No. 4968
127
4.
The Post-Effective Period
129
A.
The Procedure Surrounding Effectiveness: Rules 430A and 430B
129
B.
Prospectus Requirements in the Post-Effective Period
130
5.
Judicial Treatment of the Deficient Prospectus
136
ch. 3
The Registration Process
139
1.
The SEC's Integrated Disclosure System
139
Securities Act Release No. 6383
142
2.
Shelf Registration
145
A.
The Debate Over Rule 415
145
B.
The Impact of Rule 415
147
3.
Preparation of the Registration Statement
154
Going Public: Practice, Procedure and Consequences
156
SEC Registration of Public Offerings Under the Securities Act of 1933
166
Problem 3-1
179
Problem 3-2
179
4.
Qualitative Disclosure
179
In the Matter of Franchard Corporation
179
5.
New Approaches to Disclosure
192
Securities Act Release No. 6711
193
Securities Act Release No. 6835
195
Problem 3-3
199
Problem 3-4
199
Securities Act Release No. 7497
200
6.
Disclosure Policy and the Debate Over the Efficient Market
205
A.
What Makes the Market Efficient?: The Role of Underwriters
209
The Mechanisms of Market Efficiency
209
B.
New Critiques of the Efficient Market Hypothesis
212
Andrei Shleifer and Lawrence H. Summers
212
C.
How Do Investors Really Make Decisions: The Behavioral Economics Perspective
224
D.
Policy Implications
226
Market Failure and the Economic Case for a Mandatory Disclosure System
228
7.
Post-Filing Review and Restrictions
234
8.
Regulation of Underwriters and the Distribution Process
237
Problem 3-5
240
Problem 3-6
243
9.
Penny Stocks and Blank Check Offerings
243
Subdivision B
Coverage of The Regulation
ch. 4
Definitions of "Security" and "Exempted Securities"
246
1.
What Is a "Security"?
246
A.
"Investment Contract"
246
Securities & Exchange Commission v. W. J. Howey Co.
247
Securities and Exchange Commission v. Life Partners, Inc.
251
Securities and Exchange Commission v. Koscot Interplanetary, Inc.
259
Securities and Exchange Commission v. Edwards
266
Problem 4-1
269
B.
The "Economic Realities" Test: Downsizing the Definition of Security
270
United Housing Foundation, Inc. v. Forman
270
International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America v. Daniel
275
1.
Condominiums and Real Estate Developments
281
Securities Act Release No. 5347
281
Problem 4-2
284
Problem 4-3
284
2.
Partnerships, Limited Partnerships, and Limited Liability Companies
285
a.
Control in the Limited Partnership
285
Steinhardt Group Inc. v. Citicorp
285
b.
The Special Case of the Limited Liability Company
291
c.
Partnerships
293
d.
Limited Partnerships
293
Problem 4-4
294
C.
"Stock": The Return of Formalism
295
Landreth Timber Company v. Landreth
295
D.
"Note"
301
Reves v. Ernst & Young
301
Notes, Commercial Paper and Certificates of Deposit
311
Problem 4-5
316
2.
Exempted Securities: Sections 3(a)(2) Through 3(a)(8)
321
a.
Section 3(a)(2)
322
b.
Section 3(a)(3)
325
c.
Sections 3(a)(4) to 3(a)(8)
325
ch. 5
The Private Offering Exemptions: Sections 4(2) and 4(5)
328
Securities and Exchange Commission v. Ralston Purina Co.
333
Doran v. Petroleum Management Coro.
338
Problem 5-1
349
Problem 5-2
350
ch. 6
The Limited Offering Exemptions: Regulation
D.
Section 3(b), Regulation A, and Section 4(6)
351
1.
Regulation D: The Private Placement Safe Harbor
353
Securities Act Release No. 6389
353
Securities Act Release No. 6455
361
2.
Regulation A Offerings
376
3.
Other Exemptions: Rule 701, Regulation CE, and Section 4(5)
378
Problem 6-1
382
Problem 6-2
382
Problem 6-3
382
Problem 6-5
383
Problem 6-6
383
Problem 6-7
383
Problem 6-8
384
Problem 6-9
384
Problem 6-10
384
Problem 6-11
384
4.
Crowdfunding
385
ch. 7
Intrastate Offerings: Section 3(a)(11) and Rule 147
386
1.
The Section 3(a)(11) Exemption
386
Securities Act Release No. 4434
386
Securities and Exchange Commission v. McDonald Investment Co.
390
2.
Rule 147
395
Securities Act Release No. 5450
395
Problem 7-1
406
Problem 7-2
406
Problem 7-3
407
ch. 8
Reorganizations and Recapitalizations
408
1.
Section 2(a)(3) and the Theory of "Sale"
408
Problem 8-1
410
2.
Exempted Exchanges of Securities Between an Issuer and Its Security Holders: Section 3(a)(9)
412
Securities Act Release No. 646
412
Securities Act Release No. 2029
414
Problem 8-2
418
Problem 8-3
419
Problem 8-4
419
Problem 8-5
419
3.
Reorganizations and Reclassifications: The "No-Sale" Rule and Its Replacement
419
A.
The Original Dogma: Rule 133 and the "No-Sale" Theory
419
3.
Reorganizations and Reclassifications: The "No-Sale" Rule and Its Replacement---Continued
B.
The New Realism: Business Combinations Under Rule 145 and Form S-4
420
Problem 8-6
424
Problem 8-7
425
Problem 8-8
425
Problem 8-9
425
Problem 8-10
425
Problem 8-11
425
4.
Court and Agency Approved Reorganizations and Other Exchanges
425
Securities Act Release No. 312
425
Problem 8-12
432
5.
The Bankruptcy Exemptions
435
6.
Integration of Exemptions
444
Problem 8-13
449
7.
The Narrowing Boundaries Between Public and Private Transactions
449
8.
Going Public by the Back Door
450
Securities and Exchange Commission v. Datronics Engineers, Inc.
450
Subdivision C
The Obligation to Register Resales of Securities by Persons Other Than the Issuer
ch. 9
Offerings by Underwriters, Affiliates and Dealers
459
1.
The Concept of "Underwriter"
459
Securities and Exchange Commission v. Chinese Consolidated Benevolent Association, Inc.
462
Securities and Exchange Commission v. Guild Films Co.
466
Problem 9-1
470
Problem 9-2
471
2.
Statutory Restrictions on Distributions of Securities by Controlling Persons or Affiliates
471
In the Matter of Ira Haupt & Co.
471
Who's "In Control"?---S.E.C.
476
United States v. Wolfson
484
Problem 9-3
492
Problem 9-4
492
Problem 9-5
492
Problem 9-6
493
3.
Restrictions on Resales of Control Shares and Restricted Securities Under Rule 144
493
Problem 9-7
501
Problem 9-8
502
Problem 9-9
502
Problem 9-10
502
Problem 9-11
502
Problem 9-12
503
3.
Restrictions on Resales of Control Shares and Restricted Securities Under Rule 144---Continued
Problem 9-13
503
Problem 9-14
503
Problem 9-15
503
Problem 9-16
503
Problem 9-17
504
Problem 9-18
504
4.
The Section "4(1 1/2)" Exemption
504
The Section "4(1 1/2)" Phenomenon: Private Resales of "Restricted" Securities
504
5.
Rule 144A and the Private Resale Market
513
Resale of Restricted Securities
514
Problem 9-19
518
Problem 9-20
518
Problem 9-21
519
6.
Regulation S: An Exemption for Offerings Outside the United States
519
Offshore Offers and Sales
521
Offshore Offers and Sales
535
Problem 9-22
541
Problem 9-23
541
Problem 9-24
542
Problem 9-25
542
7.
Restrictions on Resales of Securities Issued in Reorganizations and Recapitalizations and Under the Bankruptcy Reform Act of 1978
542
pt. III
REGULATION OF TRADING IN SECURITIES
ch. 10
Regulation of the Securities Markets
557
Securities Exchange Act Release No. 61358
561
1.
The National Market System: Whose Interests Deserve Priority?
572
Securities Exchange Act Release No. 51808
573
Problem 10-1
586
2.
What is an Exchange?: A Brief Survey from the 1934 Act to Regulation ATS
587
Board of Trade of the City of Chicago v. Securities and Exchange Commission
590
Securities Exchange Act Release No. 38672
594
3.
Primary Jurisdiction and the Struggle for Competitive Rates
599
Gordon v. New York Stock Exchange
599
Credit Suisse Sec. (USA) LLC v. Billing
603
4.
Specialists and Market Makers
616
Lehl v. Securities and Exchange Commission
620
Problem 10-2
625
5.
Market Data
625
6.
Self Regulation in the Securities Industry
628
ch. 11
Regulation of Broker-Dealers
632
Problem 11-1
638
Problem 11-2
639
Problem 11-3
639
1.
Regulation Aimed at Fraud and Manipulation
639
Problem 11-4
655
Problem 11-5
655
2.
Regulation Aimed at Protection From High Risk and Insolvency -
655
3.
Regulation Aimed at Establishing the Duties of Brokers to Their Customers
661
A.
The Duty of Best Execution
662
B.
The Duty to Protect Limit Orders
664
Problem 11-6
664
C.
The Duty to Investigate: Know Your Security
665
Hardy v. Securities and Exchange Commission
665
D.
Unsuitability: Know Your Customer
671
O'Connor v. R.F. Lafferty & Co., Inc.
671
Problem 11-7
680
Problem 11-8
680
E.
Churning
680
Nesbit v. McNeil
680
F.
The Penny Stock Reform Act of 1990
690
G.
Market Domination: The Problem of the Captive or Controlled Market
692
H.
Broker-Dealers Versus Competing Professionals
695
Financial Planning Association v. Securities and Exchange Commission
695
ch. 12
Tender Offers, Management Buyouts, and Takeover Contests
706
1.
An Overview of the Williams Act
709
A.
The Section 13(d) Trip Wire
710
B.
Disclosure Under the Williams Act
712
C.
Substantive Rules
715
Epstein v. MCA, Inc.
719
D.
Litigation Issues
726
2.
Definitional Issues: Group, Tender Offer, and Bidder
728
A.
"Group" Therapy
728
GAF Corp. v. Milstein
728
Securities and Exchange Commission v. First City Financial Corp., Ltd.
739
B.
The Definition of "Tender Offer"
744
Securities and Exchange Commission v. Carter Hawley Hale Stores, Inc.
744
Hanson Trust PLC v. SCM Corporation
753
Problem 12-1
763
Problem 12-2
763
Problem 12-3
763
C.
Who's the Bidder?
764
MAI Basic Four, Inc. v. Prime Computer, Inc.
764
3.
Reforming the Tender Offer Process
770
Securities Act Release No. 7760
770
4.
Defensive Tactics: The Target Strikes Back
775
A.
The Williams Act's Application to the Target
776
B.
Defensive Tactics: The Target's Repertoire
777
5.
State Anti-takeover Legislation
795
A.
The Case Law
795
CTS Corporation v. Dynamics Corporation of America
795
Amanda Acquisition Corp. v. Universal Foods Coro.
805
B.
State Anti-takeover Legislation After CTS: Constituency and Disgorgement Statutes
813
6.
Going Private and Management Buyouts
815
Management Buyouts
815
Homing Co. v. Nationwide Corp.
817
Problem 12-4
830
7.
New Developments
830
A.
Cross-Border Tender Offers
830
B.
Debt Tender Offers
832
C.
"Mini-Tenders"
834
pt. IV
CIVIL LIABILITIES UNDER THE FEDERAL SECURITIES LAWS AND SHAREHOLDER VOTING
ch. 13
Civil Liability Under the Securities Act of 1933
835
1.
Section 11 of the 1933 Act
836
A.
Introductory Note
836
B.
Defendants and the Due Diligence Defense
838
Escott v. BarChris Construction Coro.
838
In re WorldCom, Inc. Securities Litigation
855
Defendants and the "Due Diligence" Defense Under [§] 11
872
Problem 13-1
878
C.
Causation and Damages
879
Akerman v. Oryx Communications, Inc.
880
A Cap on [§] 11 Damages
883
D.
Section 11 Plaintiffs
883
Hertzberg v. Dignity Partners, Inc.
883
Who May Recover Under [§] 11?
887
2.
Section 12 of the 1933 Act
889
A.
Section 12(a)(1)
889
Pinter v. Dahl
889
Who Is a Seller?
896
Problem 13-2
897
B.
Section 12(a)(2)
898
Gustafson v. Alloyd Company, Incorporated
898
Section 12 Post Gustafson, Reasonable Care Defense, and Other Issues
912
Problem 13-3
916
3.
Section 17(a) of the 1933 Act
917
ch. 14
Rule 10b-5: Fraud in Connection With a Purchase or Sale of a Security
919
1.
Introduction
919
2.
Statutory Requirements
923
A.
The Requirement that There be Fraud
923
(1).
Misstatements and Omissions
923
Santa Fe Industries, Inc. v. Green
923
Rule 10b-5 as a Remedy for Mismanagement
928
(2).
The Duty to Update and the Duty to Correct
932
In re Time Warner Inc. Securities Litigation
932
In re Burlington Coat Factory Securities Litigation
937
The Duty to Update and the Duty to Correct
941
Problem 14-1
942
B.
Materiality
943
(1).
Generally
943
Basic Incorporated v. Levinson
943
Matrixx Initiatives, Inc. v. Siracusano
950
Problem 14-2
959
(2).
Forward Looking Statements
959
In re Worlds of Wonder Securities Litigation
961
The Private Securities Litigation Reform Act
967
Harris v. Ivax Coro.
969
(3).
Reasons, Opinions and Beliefs
973
Virginia Bankshares, Inc. v. Sandberg
973
Puffing
976
Problem 14-3
976
C.
The "In Connection" With Requirement
977
Semerenko v. Cendant Coro.
977
SEC v. Zandford
980
The In Connection With Requirement
984
D.
Culpability
985
Ernst & Ernst v. Hochfelder
985
The Required Culpability of the Defendant
991
Problem 14-4
993
E.
Reliance and Causation
993
(1).
Reliance and the Fraud-on-the-Market Presumption
993
Basic Incorporated v. Levinson
993
In re PolyMedica Corp. Securities Litigation
998
The Fraud on the Market Theory
1012
(2).
Reasonable Reliance
1013
Semerenko v. Cendant Coro.
1013
2.
Statutory Requirements---Continued
923
Reliance and Causation
1020
(3).
Loss Causation
1021
Dura Pharmaceuticals, Inc. v. Michael Broudo
1021
Erica P. John Fund, Inc. v. Halliburton Co.
1025
Loss Causation
1030
Problem 14-5
1032
F.
Standing
1032
Blue Chip Stamps v. Manor Drug Stores
1032
The Purchaser Seller Requirement Under Rule 10b-5
1038
ch. 15
General Civil Liability Provisions
1042
1.
The Dilemma of Private Securities Litigation
1042
A.
Statutory and Class Action Provisions Unique to Securities Litigation
1042
B.
Pleading
1048
Tellabs, Inc. v. Makor Issues & Rights, Ltd.
1048
Notes on Pleading
1057
Problem 15-1
1059
C.
Lead Plaintiff and Counsel Provisions
1060
In re Cendant Corp. Litigation
1060
Notes on Lead Plaintiff and Counsel Provisions
1070
D.
Notice and Stay Provisions
1072
E.
The Evolving Law on Class Certifications
1073
In re Initial Public Offering Securities Litigation
1074
Notes on Class Certification
1090
2.
Secondary Liability
1091
A.
Control Person Liability
1091
Hollinger v. Titan Capital Coro.
1091
Control Person Liability
1096
Problem 15-2
1099
B.
Aiding and Abetting and Scheme Liability
1099
Central Bank of Denver, N.A. v. First Interstate Bank of Denver, N.A.
1100
Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc.
1102
Aiding and Abetting and Primary Liability
1115
C.
Who is the Maker of a Statement?
1118
Janus Capital Group, Inc. v. First Derivative Traders
1118
The Impact of Janus Capital
1129
Problem 15-3
1132
3.
Defenses
1132
A.
Statutes of Limitation
1133
Merck & Co., Inc., et al. v. Reynolds, et al.
1133
Inquiry Notice and Other Statute of Limitations Issues
1141
Problem 15-4
1143
B.
Other Defenses
1145
4.
Remedies
1147
A.
Rescission
1147
Randall v. Loftsgaarden
1147
Rescission and Rescissory Damages
1154
B.
Damages
1155
(1).
Overview of Methods for Measuring Damages
1155
Problem 15-5
1158
(2).
Damages in Specific Situations
1158
a.
Churning
1158
Miley v. Oppenheimer & Co., Inc.
1158
Damages Net of the Market
1161
b.
Insider Trading
1162
Elkind v. Liggett & Myers, Inc.
1162
C.
Injunctive Relief
1169
D.
Indemnification and Contribution
1170
Settlement Releases
1173
5.
Arbitration of Securities Law Claims
1173
Rodriguez de Quijas v. Shearson/American Express, Inc.
1173
Arbitration of Securities Law Claims
1176
Mastrobuono v. Shearson Lehman Hutton, Inc.
1176
Is Mandatory Arbitration Always Mandatory?
1180
ch. 16
Insider Trading
1182
1.
"Insider" Trading
1182
A.
Classical Insider Trading
1182
Chiarella v. United States
1182
B.
Temporary Insiders, Tippers, and Tippees
1186
Dirks v. SEC
1186
Tippers and Tippees
1194
C.
The Misappropriation Theory
1196
United States v. O'Hagan
1196
Securities and Exchange Commission v. Yun
1204
Who Has a Duty to Disclose and SEC Regulations
1209
Problem 16-1
1212
2.
Regulation FD
1213
3.
SEC Rule 14e-3 and Tender Offers
1215
United States v. O'Hagan
1215
Rule 14e-3 Issues
1219
Problem 16-2
1222
4.
Section 16(b) Liability for Short Swing Profits
1222
A.
Introduction
1222
B.
Purchases and Sales
1224
Kern County Land Co. v. Occidental Petroleum Coro.
1224
"Purchase" and "Sale"
1230
"Any Period of Less Than Six Months"
1233
"Profit Realized"
1233
C.
Officers and Directors
1234
Feder v. Martin Marietta Coro.
1234
4.
Section 16(b) Liability for Short Swing Profits-Continued Officer or Director
1239
D.
Beneficial Ownership
1240
Feder v. Frost
1240
Ten Percent Holder
1243
Problem 16-3
1245
E.
Rule 16b-3 and Employee Benefit Plans
1245
The Sarbanes-Oxley Act
1246
ch. 17
Federal Securities Law and Shareholder Voting
1247
1.
Introduction
1247
2.
Proxy Solicitation Process and Shareholder Voting
1248
A.
Shareholder Proposals---Generally
1248
B.
The "Economic Irrelevance" and "Ordinary Business" Exclusions
1250
Marriott International, Inc.
1253
Note on No-Action Letters
1264
3.
Bylaw Amendments Under Rule 14a-8
1264
American Federation of State, County & Municipal Employees, Employees Pension Plan v. American International Group, Inc.
1265
CA, Inc. v. AFSCME Employees Pension Plan
1270
Proxy Access and the Dodd-Frank Act
1276
4.
Rule 14a-9: Proxy Fraud
1278
A.
Implied Cause of Action
1279
J.I. Case Co. v. Borak
1279
Implied Cause of Action
1281
B.
Materiality
1282
TSC Industries, Inc. v. Northway, Inc.
1283
What Facts Are Material?
1292
C.
Culpability
1295
Adams v. Standard Knitting Mills, Inc.
1295
Culpability Under Rule 14a-9
1300
D.
Causation
1301
Mills v. Electric Auto-Lite Co.
1301
The Causation---Materiality Nexus
1305
ch. 18
Civil Liability Under the Investment Company Act
1307
1.
Background
1307
2.
Registration and Regulatory Provisions
1310
3.
Civil Liability
1312
Jones v. Harris Associates L.P.
1312
Problem 18-1
1320
Meyer v. Oppenheimer Management Coro.
1321
Dodd-Frank's Requirements
1325
Problem 18-2
1326
4.
Registration
1326
Chamber of Commerce of the United States of America v. Securities and Exchange Commission
1326
Goldstein v. Securities and Exchange Commission
1335
ch. 19
State Law
1344
1.
Partial Federal Preemption
1344
Merrill Lynch, Pierce, Fenner & Smith Inc. v. Dabit
1345
2.
Common Law
1351
3.
Blue Sky Law
1353
A.
The Uniform Securities Act
1353
B.
California Corporate Securities Law of 1968
1354
C.
New York Securities Law
1356
4.
Specific Elements of State Securities Claims
1357
A.
Causation and Reliance
1357
Ritch v. Robinson-Humphrey Co.
1357
Fraud on the Market
1358
B.
Derivative Liability
1358
Taylor v. Perdition Minerals Group, Ltd.
1358
Johnson v. Colip
1361
C.
Jurisdiction
1365
A.S. Goldmen & Co., Inc. v. New Jersey Bureau of Securities
1365
Jurisdiction in Interstate Transactions
1372
Problem 19-1
1374
pt. V
ENFORCEMENT OF THE FEDERAL SECURITIES LAWS
ch. 20
SEC Enforcement Actions
1375
1.
Procedures
1376
Formal Investigations
1377
A.
Special Issues: Proper Purpose
1378
B.
Right to Counsel
1379
C.
Confidentiality
1379
D.
Wells Submissions
1380
E.
Rules of Practice
1380
F.
Expanded Authority in Administrative Proceedings
1381
2.
Remedies
1381
A.
Injunctions and Ancillary Relief
1382
SEC v. Unifund SAL
1383
B.
Disgorgement and Ancillary Relief
1389
SEC v. First Jersey Securities, Inc.
1389
Notes on Disgorgement and Ancillary Relief
1395
Securities and Exchange Commission v. Bank of America Corporation
1397
Problem 20-1
1403
C.
Ex Parte Sanctions
1403
D.
New Statutory Remedies
1404
(1).
Civil Fines
1404
(2).
Cease and Desist Orders
1405
Valicenti Advisory Services, Inc. v. SEC
1406
WHX Corporation v. Securities and Exchange Commission
1409
(3).
Corporate Bar Orders
1415
SEC v. Patel
1415
2.
Remedies---Continued
Sarbanes-Oxley and the Corporate Bar Order
1418
(4).
Collateral Bar Orders
1418
3.
SEC Enforcement and Professionals
1419
A.
Securities Attorneys and Accountants
1419
(1).
Introduction to Rule 102(e)
1419
(2).
Rule 102(e) and Attorneys
1420
Carter & Johnson
1420
Rule 102(e) Overtime
1437
SEC v. Fehn
1444
Problem 20-2
1450
(3).
Accountants' Independence
1450
a.
SEC Actions
1450
b.
The Sarbanes-Oxley Act
1453
B.
Corporate Registrants, Officers, and Directors
1455
SEC v. World-Wide Coin Investments, Ltd.
1456
Sarbanes-Oxley and Dodd-Frank
1466
C.
Broker-Dealers
1469
In the Matter of John H. Gutfreund, et al.
1469
Broker-Dealer Disciplinary Proceedings
1480
Problem 20-3
1481
Broker-Dealers and SRO Regulation
1481
D.
Investment Advisers
1483
(1).
Definition of "Investment Adviser"
1484
Lowe v. SEC
1484
Who Is an Investment Adviser?
1488
The Dodd-Frank Act and Investment
Adviser Regulation
1490
Problem 20-4
1492
(2).
Scalping
1493
SEC v. Capital Gains Research Bureau, Inc.
1493
Problem 20-5
1498
ch. 21
Criminal Enforcement of the Federal Securities Laws
1499
1.
Procedural Issues
1500
SEC v. Dresser Industries, Inc.
1501
Parallel Proceedings
1507
2.
Criminal Prosecutions Under the Federal Securities Laws
1508
United States v. Dixon
1508
Knowing Versus Willful
1511
United States v. Bilzerian
1512
Reliance on the Advice of Counsel
1517
Stock Parking
1518
United States v. Mulheren
1519
The Meaning of Manipulation
1527
Legislative Enhancements to Criminal Liability
1528
ch. 22
International Enforcement
1529
1.
The Jurisdiction of U.S. Courts over Claims by Private Plaintiffs
1530
Morrison v. National Australia Bank, Ltd.
1530
Notes on Morrison
1544
2.
Government Extraterritorial Enforcement of the Securities Laws
1547
A.
The Conduct and Effect Test
1548
Schoenbaum. v. Firstbrook
1548
The Conduct or Effect Test
1553
B.
Federal Enforcement Post-Morrison and the Dodd-Frank Act
1555
Problem 22-1
1558
C.
The Challenges to Governmental Enforcement Efforts
1558
SEC v. Banca Delia Svizzera Italiana
1558
Bilateral and Multilateral Enforcement Efforts
1564
Index
1567