Traders to Face Some SEC Fake Registration Exemptions Claims (1)

Traders accused of illegally obtaining and then dumping shares of microcap companies beat part of the SEC’s case against them, but some of the agency’s claims can move forward, a New York federal district judge said.

Investment group Magna, founder Joshua Sason, and former research head Marc Manuel falsely set up stock transactions to make it look as if they qualified for registration exemptions, the Securities and Exchange Commission said.

The agency adequately alleged some of its fraud claims against Magna and Manuel, but didn’t provide enough support for others, including the fraud claims against Sason, the U.S. District Court ...