Justia Securities Law Opinion Summaries

Articles Posted in Kansas Supreme Court
The Supreme Court reversed the decision of the court of appeals reversing the judgment of the district court in this action alleging that Defendants sold or offered to sell unregistered securities and committed fraud in selling or offering to sell securities, holding that Kansas courts did not have jurisdiction to prosecute the criminal charges in this case.Defendants David Lundberg and Michael Elzufon were Minnesota residents who sold as principals for Kansas limited liability corporations what the State alleged to be securities by using intermediaries who resided in California. The California intermediaries, in turn, made sales presentations in California and sold the securities from California to individuals who were not Kansas residents. The district court dismissed the counts against Defendants related to the sales involving the California intermediaries. The court of appeals reversed, holding that the sales originated in Kansas and thus Kansas had territorial jurisdiction. The Supreme Court reversed, holding that the Kansas Uniform Securities Act, Kan. Stat. Ann. 17-21a101 et seq., did not allow Kansas courts to exercise jurisdiction over Defendants because neither an offer to sell nor a sale of securities occurred in Kansas. View "State v. Lundberg" on Justia Law