Legal Ethics
Gen'l Counsel Did His Job, Didn't Fail to Supervise Rogue Broker, Judge Rules
A general counsel for an investment bank had some supervisory responsibilities concerning a rogue broker who admittedly participated in a market manipulation scheme at Ferris Baker Watts Inc.
But Theodore Urban performed those responsibilities in a “cautious, objective, thorough, and reasonable manner,” a Securities and Exchange Commission administrative law judge ruled in an opinion (PDF) today.
Hence, although Chief Administrative Law Judge Brenda Murray praised the SEC for its “regulatory zeal,” she also found that it wasn’t in the public interest to sanction Urban, reports the Blog of Legal Times.
Her initial opinion is still subject to SEC review.
