Friday, October 05, 2012

It's in the eye of the beholder, apparently

On New York's Martin Act:
The Martin Act, which was enacted in 1921 as a deterrent against “blue-sky” fraud, allows New York’s attorney general to pursue criminal or civil charges against companies. But the law does not require the government to show proof that the defendant intended to defraud anyone, or that fraud actually took place. So the state has a lower bar to bring cases.
I've not read the underlying legislation. But that more or less seems like it allows the government to pursue criminal charges against anyone involved in finance, for no reason, whenever it feels like. Clearly no harm can come of that.


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