The Detailed Description of the SEC Laws and its Relevance to the Industry

Introduction

Concerning section 17 of the 1933 anti-fraud provision, Meli was guilty of improper insurance of securities. The Act states that "it is illegal to use scheme, an artifice of fraud or any device to support insurance of fake securities to obtain property or money" (Macey, 2010). It also specifies that any fraudulent transaction, deceit upon the purchaser or any form of malpractice on people's money renders the perpetrator guilty of a term not less than 20 years if the defendant goes on trial or a jail term between 78-97 months. Meli pleaded guilty and was sentenced a six-year incarceration term for wire fraud.

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Macey (2010) provides grounds for making an insight into the SEC laws that convicted Meli. Section 17 alludes to rule 10 (b) (5) of Securities Exchange Act amended in 1934 concerning universal fraud prevention. The chapter is relevant in preventing individuals from subjecting companies and individuals to selfish fraudulent behavior on their securities. It is clear that there was violation of Trust Indenture Act of 1939 since Meli and his allies engaged in wire fraud (Macey, 2010). According to SEC, Meli was guilty, and it was right to subject him to the 6-year incarceration period since he had pleaded guilty. The coutrt alluded to all underpinning elements of SEC Acts both the 1933, 1934 and 1939 that protects businesses and corporations from engaging in unruly acts.

Meli violated 1933 SEC section 17 (a) part 2 which states that any individual who tries to obtain money or property through any untrue means, statements of facts or by the omission to state material fact or using any misleading information is guilty and is liable to a felony charge. The verdict upon Meli are viable to the industry as Meli will be prevented from carrying on the fraudulent acts and his property will be frozen to finds ways of alleviating the mess caused on people's securities.

Macey (2010) mentioned that section 17 part 3 of SEC indicated that the case involved Meli carrying out the investors transactions, course of business and practices that aimed at deceiving the purchaser with delay tactics. The criminal charges were set against him and accused all his allies with two counts of securities and wired fraud and a conspiracy to commit both counts (Macey, 2010). The involvement of investors in the fraud for with deceitful appeal of buying the tickets and reselling them at a profit was a violation of part 2 of section 17 of 1933 SEC Act.

The Importance of US Securities and Exchange Commission to the Companies

The 1939 SEC Acts gives grounds to organizations to enlist all business accomplices that it manages while offering bonds and putting resources into securities. Since Meli damaged Indenture Act of 1939, organizations need to enroll all accomplices including specialists as a consistence to the gauges of the Act. Macey (2010) mentioned that SEC is responsible for making enforcement of the federal securities laws, adopting securities rule, establishing regulations for securities industry and controlling the inappropriateness identified in any securities and commission. SEC also enforces the security Act of 1933 to conform to the Trust Indenture Act of 1939 and the Investment Act of 1940 (Macey, 2010). The law protects companies from any repeat or attempt of an individual to violate business operations as protected by the US Securities and Exchange Commission (Macey, 2010). The law protected the company from making a further loss of up to $95 million by 2017.

The organizations and the conned people were eased after judges issued a directive in SEC's Scheme. Macey (2010) mentions that the mandate was by the law along these lines requested solidifying of advantages that had a place with all the asserted perpetrators of Ponzi Scheme. The suspected fraud also leads to the U.S. District Judge Stanton Louis to put the US Exchange Commission and Securities'' civil fraud against Matthew Harriton and Meli to allow the federal prosecutors to speculate the related case concerning Meli and all the related defendants (Stempel, 2017). The efficacy of the law is to the company is that it brought to book any planned conning of the public as it was found out that the defendants were using the current investor's money to repay the early investors while using the remaining funds to repay their gambling debt and acquiring jewelry.

The Companies Concerned About the News

The news concerns the organizations that are straightforwardly influenced by the misrepresentation done by the charged deceitful litigant Joseph Meli (Stempel, 2017). The other organization is Hamilton Company the official organization that is associated with Meli's techniques to make his demonstrations fruitful. The third company is Broadway Blockbuster that was to buy tickets for holding a British singer, Adele. Lastly, Harry Potter and the Cursed Child need to speculate and make a thorough insight into the news to safeguard their operations through a clear follow-up of SEC laws.

References

Macey, J. R. (2010). The Distorting Incentives Facing the US Securities and Exchange Commission. Harv. JL & Pub. Pol'y, 33, 639.

Stempel, J. (2017). Judges issues injunction in SEC's Hamilton' Ponzi case. U.S. Legal News. Retrieved from https://www.reuters.com/article/usa-crime-ponzi-hamilton/judge-issues-injunction-in-secs-hamilton-ponzi-case-idUSL1N1HZ260