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Ian Roffman Discusses Ruling in SEC v. Sargent in Massachusetts Lawyers Weekly
Print PDFIan Roffman, a partner and chair of Nutter’s Securities Enforcement and Litigation practice group, weighed in on the 1st U.S. Circuit Court of Appeals determining that a Connecticut lawyer could be liable for selling unregistered securities in violation of federal law in Massachusetts Lawyers Weekly. In the article, “Penny stock trader liable for selling unregistered securities,” Ian pointed out that SEC v. Sargent stands as a cautionary tale “for onetime insiders who try to rid themselves of insider status and use third parties to buy or sell unregistered securities as part of a complicated transaction.”
Ian added, “The Court put the nail in the coffin on a common argument that tax payments should be deducted from SEC disgorgement awards. The SEC seeks injunctions and bars in every case. But the Court [in Sargent] emphasized that the SEC is not entitled to an injunction and bar simply because there was a violation of the federal securities law. It has to make an extra showing to get that relief.”
