Securities - Accountant's Liability - United States Supreme Court Holds Accountant Not Liable under Rule 10b-5 Unless Defendant Intended to Deceive, Manipulate or Defraud Investor
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Beissel, Jeffrey W.
FIRST PARAGRAPH(S)|Leston B. Nay, president and 92 percent shareholder of the First Securities Company of Chicago, revealed in a suicide note that for approximately 26 years prior to his death he had perpetrated a fraud upon a number of First Securities' clients. Nay had induced the plaintiffs, regular brokerage customers of First Securities, to invest in private "escrow" accounts which Nay represented would yield a high rate of return. In fact, the accounts were non-existent and Nay converted the plaintiffs' funds to his own use. This disclosure resulted in a number of lawsuits...
9 Creighton L. Rev. 775 (1975-1976)
Creighton University School of Law