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Aaron v. Securities and Exchange Commission

Supreme Court of the United States

446 U.S. 680 (1980)

Relevant factsFree

Aaron, a supervisor at an investment firm (defendant), was charged by the SEC (plaintiff) with failing to prevent fraudulent sales practices by salespersons under his supervision, in violation of section 17(a) of the Securities Act of 1933.

IssueFree

Whether scienter-a mental state embracing intent to deceive or defraud-is required for liability under all subsections of section 17(a) of the Securities Act of 1933.

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