9th Circuit Affirms Judgment for SEC In Suit Over Radical Bunny’s $189M Scheme

The U.S. Court of Appeals for the Ninth Circuit July 10 affirmed a judgment for the Securities and Exchange Commission in its suit against Radical Bunny LLC, a bankrupt Phoenix, Arizona-based company, and four of its promoters over a fraudulent $189 million investment scheme involving mortgages (SEC v. Radical Bunny LLC).

The appeals court agreed with the lower court’s determinations that the defendants sold securities or notes and that they acted with the requisite scienter under the 1933 Securities Act. The appeal was brought by the four individual defendants, Tom Hirsch, Berta Walder, Howard Walder, and ...