LexisNexis Corporate & Securities Law Community 2011 Top 50 Blogs

Bon mots

"You can observe a lot just by watching." Yogi Berra

"We do not distain to borrow wit or wisdom from any man who is capable of lending us either." Henry Fielding, Tom Jones

"In our complex society the accountant's certificate and the lawyer's opinion can be instruments for inflicting pecuniary loss more potent than the chisel or the crowbar." United States v. Benjamin, 328 F.2d 854, 862 (2d Cir. 1964)

John M. Lucarelli, Exchange Act Rel. 56075, July 13, 2007

Dismissal of proceeding based on criminal proceeding.

Respondent was convicted by a jury on one count of conspiracy to commit mail fraud and one count of securities fraud.  Administrative proceedings were instituted based on that verdict.  The proceedings were stayed pending entry of a judgment by the district court.  Several months later, the court entered a judgment of acquittal and set aside the jury verdict.  The Division of Enforcement agreed that the proceedings should be dismissed, but argued that the dismissal should be without prejudice.  It argued that this was appropriate because the U.S. Attorney had moved that the district court reconsider its acquittal.  

The Commission found only that there was no jurisdictional basis for the proceeding based on the judgment of acquittal.  It did not address whether the dismissal should be with or without prejudice, noting that the Commission's rules do not make such a distinction.


At last a short decision, less than three full pages, although it managed to cram in seven footnotes.