{"id":1232,"date":"2013-04-16T21:52:46","date_gmt":"2013-04-16T21:52:46","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2013\/04\/securities_fraud_roundup_6th_c"},"modified":"2022-03-10T16:33:46","modified_gmt":"2022-03-10T22:33:46","slug":"securities-fraud-roundup-6th-c","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-roundup-6th-c\/","title":{"rendered":"Securities Fraud Roundup: 6th Circuit Affirms Ruling Affirms Broker\u2019s Liability Over Reverse Merger, Ex-Stockbroker Pleads Guilty to Insider Trading Over IBM\u2019s SPSS Acquisition, & Father and Son Convicted in $50M Real Estate Fraud"},"content":{"rendered":"

\t\t\t\t6th Circuit Affirms Ruling Affirming Broker’s Liability Over Reverse Merger<\/strong><\/p>\n

The U.S. Court of Appeals for the Sixth Circuit says that a district court was correct in granting summary judgment to the Securities and Exchange Commission over its claim that broker Aaron Tsai made disclosure and registration violations related to a “reverse merger” involving a shell company. The lower court had ordered Tsai to pay about $352,000 in disgorgement and prejudgment interest while barring him from future violations. Affirming that court’s decision, the appeals court said that the broker’s transactions in unregistered stock were not exempt, pursuant to 1933 Securities Act Rule 144(k). <\/p>\n

Tsai was the former president and CEO MAS Acquisition XI Company, which had a reverse merger and sold shares on the OTCBB in 2000. After his initial filing was turned down, he moved shares from five former directors who were initial company shareholders, to 28 other shareholders via previously signed stock powers. Tsai then obtained approval to finish up the reverse merger with Blue Point. The SEC filed civil enforcement naming him and other defendants while alleging Securities Act and Exchange Act violations, including failure to register securities before their sale or offering and failure to reveal that he had beneficial ownership of the securities. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

6th Circuit Affirms Ruling Affirming Broker’s Liability Over Reverse Merger The U.S. Court of Appeals for the Sixth Circuit says that a district court was correct in granting summary judgment to the Securities and Exchange Commission over its claim that broker Aaron Tsai made disclosure and registration violations related to a “reverse merger” involving a […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3811,3741],"tags":[],"class_list":["post-1232","post","type-post","status-publish","format-standard","hentry","category-insider-trading","category-securities-fraud"],"yoast_head":"\nSecurities Fraud Roundup: 6th Circuit Affirms Ruling Affirms Broker\u2019s Liability Over Reverse Merger, Ex-Stockbroker Pleads Guilty to Insider Trading Over IBM\u2019s SPSS Acquisition, & Father and Son Convicted in $50M 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