On December 3, 2018 Robert Heim argued the case Lorenzo v. SEC before the U.S. Supreme Court. Mr. Lorenzo’s appeal raises important legal questions about whether the SEC can sanction a person for alleged fraudulent misstatements even though that person didn’t make the misstatements at issue. This issue comes up in many SEC enforcement cases and it has split the circuit courts of appeals.
Mr. Lorenzo, who is a former investment banker, appealed from a 2017 decision by the DC Circuit Court of Appeals that held that while Mr. Lorenzo did not make the statements at issue he could nevertheless be held liable for those statements under a fraudulent scheme legal theory. Mr. Lorenzo has argued that the DC Circuit Court’s ruling is contrary to a 2011 US Supreme Court decision in the case Janus Capital Group, Inc. v. First Derivative Traders.
A recording of Mr. Heim’s Supreme Court oral argument can be heard here: www.oyez.org/cases/2018/17-1077