SEC Pleaded Material Misrepresentation, Scienter Against CFO, Judge Rules

Mealey's (December 15, 2016, 1:54 PM EST) -- TAMPA, Fla. — The Securities and Exchange Commission has properly pleaded a material misrepresentation or omission in claiming that the former chief financial officer (CFO) of a petroleum storage and sales company withheld information from investors regarding, inter alia, the storage capacity of tanks at the company’s three facilities in violation of federal securities laws, a federal judge in Florida ruled Dec. 9 in denying the CFO’s motion to dismiss the complaint in its entirety (Securities and Exchange Commission v. Michael P. Toups, et al., No. 16-1798, M.D. Fla.; 2016 U.S. Dist. LEXIS 171478)....