Plaintiff Securities and Exchange Commission brought a summary judgment motion against defendants, who are Hong Kong nationals and corporations that operated a pyramid scheme involving educational software. Finding that the misrepresentation by defendants were intentional and material, the court found the defendants liable under Section 10(b) of the Exchange Act and 17(a) of the Securities Act.
Here is another edition of: "SEC: not your ordinary civil plaintiff." Summary judgment motion as a plaintiff is a hyper-aggressive move, and courts rarely grant them. But when the plaintiff is the SEC, the courts may end up doing this.
Note also that the SEC exercised jurisdiction because the (false) securities were marketed in the United States. The United States government would not stop the charges just because the defendants are located overseas.
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