Archive | Rule 801(d)(2)(D)

Saturday, January 17th, 2009

Lies My Broker Told Me

United States v. Kelley, No. 06-5536-cr (2d Cir. January 5, 2009) (per curiam)

Kevin Kelley, a stock broker, was convicted of securities and wire fraud based on his fraudulent activities with respect to four separate securities. For each of them he would either (1) purchase stocks for his clients without their authorization (2) do so without disclosing his own interest in the company or (3) misappropriate client funds for his own use. Kelley subsequently deceived his clients about the value of their investments by sending them false account statements.

Over his objection, those account statements were admitted into evidence on the securities fraud counts. On appeal, he pursued that claim, again without success. Kelley’s specific argument was that under 15 U.S.C. § 78j – section 10(b) of the Securities Exchange Act of 1934 – it is a crime to “employ, in connection with the purchase or sale of any security …

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Categories: Rule 801(d)(2)(D), securities law, Uncategorized

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