In an action by the SEC seeking civil penalties for securities fraud, judgment for plaintiff is affirmed where: 1) the district court did not abuse its discretion in concluding that, at the time of the transaction at issue, the government official whose fraud defendants allegedly abetted was a fiduciary with respect to the transaction; 2) the district court did not abuse its discretion in determining that the fee paid to one defendant as part of that transaction was material; and 3) there was substantial evidence that defendant knowingly aided and abetted the official in violating section 10(b) of the Securities Exchange Act and Rule 10b-5.
Argued: May 14, 2009
Decided: November 25, 2009
Opinion by Judge Wesley
James A. Wade, William J. Kelleher, III, Thomas J. Donlon, Robinson & Cole LLP, Stamford, CT
Luis De La Torre, Jacob H. Stillman, Securities and Exchange Commission, Washington, DC