Securities fraud’s lack of mooring in a fully developed concept of fraud produces at least three costs: public and private actions are not brought on behalf of clearly specified regulatory objectives; the line between civil and criminal liability has become unacceptably blurred, and the law has come to provide at best a weak means of resolving vital public questions about wrongdoing in financial markets” Required: - What do you mean by churning in security fraud? Discuss the various elements to prove that a registered person engaged in a churning scheme.
“Securities fraud’s lack of mooring in a fully developed concept of fraud produces at least three costs: public and private actions are not brought on behalf of clearly specified regulatory objectives; the line between civil and criminal liability has become unacceptably blurred, and the law has come to provide at best a weak means of resolving vital public questions about wrongdoing in financial markets”
Required: -
What do you mean by churning in security fraud? Discuss the various elements to prove that a registered person engaged in a churning scheme.
Evaluate the concept of block order scheme used by the broker. Discuss your opinion undertaken by the fraud examiner to prove the block order scheme.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
