LLC Interests May Constitute 'Securities'

Recently, the Second Circuit Court of Appeals, in affirming convictions for securities fraud and conspiracy to commit securities and mail fraud, ruled in <i>U.S. v. Leonard</i>, that interests in various limited liability companies ("LLCs") onstituted "securities" for purposes of the federal securities laws. The Leonard analysis is instructive of the process that a court will follow in considering the status of non-traditional securities, such as LLC interests, under the federal securities laws.

23 minute read August 27, 2008 at 01:02 PM
By
Robert S. Reder
LLC Interests May Constitute 'Securities'

On June 11, 2008, the Second Circuit Court of Appeals, in affirming convictions for securities fraud and conspiracy to commit securities and mail fraud, ruled in U.S. v. Leonard

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