Securities and Exchange Commission v. Apuzzo
United States Court of Appeals for the Second Circuit
689 F.3d 204 (2d Cir. 2012)
Relevant factsFree
Terex CFO Apuzzo (defendant) helped URI's CFO carry out fraudulent transactions letting URI prematurely recognize revenue in violation of GAAP, by executing agreements disguising URI's true involvement and approving inflated invoices; the SEC (plaintiff) sued Apuzzo for aiding and abetting, and the district court dismissed for failure to allege substantial assistance.
IssueFree
Whether an aider and abettor substantially assists a primary party with a fraudulent venture in violation of securities laws if the aider and abettor associates with the venture, actively participates in the venture, and seeks by action to make the venture succeed.