Bankruptcy Sec. 523(a)(19) Prevents Dischargeability of Person Culpable of Securities Violations

The Securities and Exchange Commission (SEC) brought action against a lawyer to disgorge $580K in attorney's fees he received from trust funds, because they had not been earned. Attorney filed for bankruptcy. SEC brought action under Section 523(a)(19) to determine debt nondischargeable. Held: Because the lawyer was not culpable of securities violations that caused the debt, Section 523(a)(19) will not apply to him.
Contributor
Robin Mashal
Los Angeles, California
Commercial Litigation
(310) 286-2000

About
I am a litigation lawyer, licensed to practice law in the State of California. You can reach me by phone at (310) 286-2000.