SEC Brief in SEC v. Kramer, No. 11-12510-DD (11th Cir.) (Brief)

SEC Brief in SEC v. Kramer

August 19, 2011

The SEC submitted a brief to the Eleventh Circuit Court of Appeals to appeal a lower court decision relating to the distinction between a "finder" and a "broker" for the purposes of the registration requirements under the Exchange Act. The case involves a defendant who, among other things, solicited sales of stock in a company, pursuant to a "cooperative" agreement to share business and split fees with a registered broker. The registered broker sold shares in the company, for which the unregistered defendant received compensation. The lower court took the view that the defendant was not a "broker," due to, among other things, limited involvement by the defendant in consummating the transaction.

For more information about this document, you may contact one of the following Cadwalader attorneys: Steven D. Lofchie; Jeffrey L. Robins; Maurine R. Bartlett; Alan M. Parness; Glen P. Barrentine.

Cross References:

SEC v. Kramer, No. 8:09-cv-455-T-23TBM (M.D. Fla. Apr. 1, 2011) (lower court decision)

Exchange Act Section 3(a)(4)(A)

Exchange Act Section 15

Lofchie's Guide to Broker-Dealer Regulation, Chpt. 2 - Registration Requirement