WASHINGTON (March 15, 2011) – The North American Securities Administrators Association (NASAA) has filed a brief in U.S. District Court Northern District of Texas Dallas Division urging the court to deny a request for a preliminary injunction to halt administrative proceedings brought by state regulators against Securities America Inc. and Securities America Financial Corporation and other defendants.
A hearing has been scheduled for March 18 in the federal court in Dallas.
State securities regulators in Massachusetts and Montana have initiated investigations into allegations of wrongdoing by Securities America and others involving the offer and sale of securities.
In its brief, NASAA said: “The state regulators have dedicated significant resources and expended great effort in the course of these investigations and now face the potential of having this Court halt those proceedings.
“The request by the Plaintiffs to enjoin the state regulators will not only terminate the efforts of the Massachusetts and Montana regulators, but it will have a chilling effect on all state securities regulators in that, despite their clear statutory authority to take steps necessary to police illicit conduct in their states, they potentially face having that authority impaired by defendants who would run to federal courts to plead poverty. The Court should, therefore, refrain from interfering with the states’ proceedings as they seek to fulfill their critical function.”
For more information:
Bob Webster, Director of Communications