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The Securities and Exchange Commission can pursue fraud charges against an Internet gambling site that ran a "virtual stock exchange," the 1st U.S. Circuit Court of Appeals has ruled, overturning a district court judge. The SEC alleged that the investment offerings of StockGeneration were a pyramid scam that violated federal securities laws. The 1st Circuit held that the language of the site essentially represented a type of investment contract.
September 18, 2001 at 12:00 AM
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The original version of this story was published on Law.Com
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