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H. Peter Haveles, Jr. Quoted in InsideCounsel, 'Court Clarifies Standard for SEC Aiding and Abetting'


H. Peter Haveles Jr., a partner in the Commercial Litigation Practice Group of Pepper Hamilton, was quoted in the October 30, 2012 InsideCounsel article, “Court Clarifies Standard for SEC Aiding and Abetting.”

“The fact that the SEC brought this case in and of itself indicates that the SEC is willing to be aggressive and proactive in asserting claims for aiding and abetting,” says Haveles. “Apuzzo enables the SEC to proceed with more confidence that it can succeed in bringing these cases.”


Although no court has yet addressed the merits of the Securities and Exchange Commission’s (SEC) case against Joseph Apuzzo, the factual scenario presented in the allegations, along with the clarified SEC standard, provides a good red flag—one should always be careful regarding transactions that are geared too much toward revenue recognition, says Haveles.


“When transactions are contrived and put together that have no real purpose other than to give the appearance of a stronger balance sheet, it creates risk for all the participants,” Haveles says. “When you’re looking at a transaction, be sure that there’s some bona fide business reason behind it so you don’t subject yourself to the type of risk you saw arising out of Apuzzo.”

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