Such an arrangement, the majority emphasized, remained beyond the sphere of reasonable foreseeability, a pivotal criterion in assessing claims under the Investment Advisers Act.
Split 2nd Circuit Frees Ex-Apollo Exec From SEC Fraud Fine : A Divided Verdict
Judge Walker articulated for the majority, accentuating that any alternative inference would unjustly impose an onerous duty of care on Rashid, verging on the precipice of strict liability. “A fiduciary’s duties under the Investment Advisers Act are demanding, but they are not boundless,” he asserted emphatically.
However, Circuit Judge Amalya Kearse dissented vehemently, rebutting the majority’s leniency towards Rashid’s purported ignorance. “Rashid deliberately sought to defraud someone into paying for his personal expenses,” Judge Kearse contended, underscoring Rashid’s proactive efforts in camouflaging these expenses under false pretenses.
Echoes of Acquittal
In a triumphant response to the verdict, Rashid’s attorney Faith Gay lauded the Second Circuit for its meticulous scrutiny of the legal intricacies, reiterating that no fraud had transpired upon any client or prospective client under Rashid’s purview.
