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DISTRICT COURT, DENVER COUNTY, COLORADO V Defendant  Form

DISTRICT COURT, DENVER COUNTY, COLORADO V Defendant Form

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the United States Supreme Court considered whether persons who aided and abetted securities violations could be liable under Section 10B of the Securities Exchange Act of 1934 in the case of Central Bank of Denver versus First Interstate Bank of Denver the Colorado Springs Stetson Hills public building authority issued bonds to finance real estate development in Colorado Springs Central Bank of Denver served as trustee for the bonds as trustee Central Bank was required to assess the appraisal value of the land securing the bonds and determine whether the building authority was financially sound for unexplained reasons Central Bank delayed review of the appraisals until after the bonds were issued the building authority quickly defaulted on the bonds First Interstate Bank of Denver a bondholder brought suit against Central Bank first enter State alleged that Central Bank aided and abetted securities fraud in violation of section 10B by making fraudulent misrepresentations concerning the

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