Carter & Johnson
Securities and Exchange Commission
47 SEC 471 (1981)
Relevant factsFree
Attorneys Carter and Johnson (defendants), hired to help National Telephone Company navigate insolvency, drafted investor letters and proxy statements portraying the company as entering a strong financial position shortly before it failed; the SEC (plaintiff) charged them with aiding National's securities fraud in violation of Exchange Act § 10(b), and an administrative law judge ruled against them.
IssueFree
Whether an attorney is guilty of aiding and abetting securities fraud under Rule 2(e) when he is aware his role is part of improper or illegal activity, in the absence of a clearly established ethical standard governing such liability at the time of the conduct.
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