Today, after a nine-day trial, a jury serving in the United States District Court for the District of Massachusetts ruled in favor of the SEC against Connecticut attorney Henry Sargent. The jury found that Sargent committed securities fraud in connection with a scheme to disguise stock sales by corporate affiliates. The SEC charged that Sargent reaped approximately $900,000 in proceeds from his scheme. 

Statement of SEC Division of Enforcement Director Gurbir S. Grewal:

“We are pleased with today’s jury verdict holding the defendant liable for securities fraud. Our system of securities regulation is designed to protect the investing public, and lawyers play a critical role in this. When a lawyer uses his specialized expertise to fraudulently skirt the laws governing public sales of securities, everyday investors are usually the ones who suffer. To protect the investing public, we will continue to pursue lawyers who abuse their expertise and professional responsibilities.” 

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More information:

On June 27, 2019, the SEC filed its civil complaint.

On March 8, 2022, the District Court entered summary judgment against Henry Sargent for his violation of Section 5 of the Securities Act of 1933. https://www.sec.gov/files/sargent-memorandum-decision.pdf