SEC v. Frohling

Defendant John B. Frohling appeals the district court's judgment in an enforcement action brought by the SEC in connection with public offerings of unregistered shares of stock of defendant Greenstone. The district court granted a motion by the SEC for summary judgment on issues of liability, holding Frohling--who as Greenstone's securities counsel in 2006-2008 wrote, approved, or concurred in 11 opinion letters relating to all of the relevant offerings--liable for violating section 17(a) of the Securities Act of 1933 ("Securities Act"), 15 U.S.C. 77q(a); section 5 of the Securities Act, 15 U.S.C. 77e; and section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), 15 U.S.C. 78j(b), and Rule 10b-5 thereunder, 17 C.F.R. 240.10b-5. The Superseding Final Judgment orders Frohling to pay a total of $204,161.86 as a civil penalty, disgorgement, and prejudgment interest, and permanently bars him from participating in so-called "penny stock" offerings. The court found no basis for reversal and affirmed the judgment. View "SEC v. Frohling" on Justia Law