Penny Stock Trader Can’t Dodge SEC Suit on Record

By Mike Curley (May 26, 2022, 3:58 p.m. EDT) – A federal judge in Minnesota won’t let brokerage firm Carebourn Capital LP escape a U.S. Securities and Exchange Commission lawsuit alleging it raked in profits while circumventing regulations, claiming that the SEC complaint explains why the company was required to register as a reseller with the agency.

In an order filed Tuesday, U.S. District Judge Katherine M. Menendez rejected Carebourn’s bid to dismiss the SEC lawsuit, saying the agency had sufficiently alleged that she met the Securities definition of a broker. Exchange Act by engaging in the activity of buying and selling securities as part of its regular business.

Judge Menendez…

Stay one step ahead

In the legal profession, information is the key to success. You need to know what’s going on with customers, competitors, practice areas and industries. Law360 provides the intelligence you need to stay an expert and beat the competition.

  • Access to case data in articles (numbers, filings, courts, nature of lawsuits, etc.)
  • Access to attached documents such as briefs, motions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and more!


Comments are closed.