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Matt Levine

It’s Hard to Make Everything Securities Fraud

Also mutual fund sales, Jeffrey Epstein and Deutsche Bank jobs.

As I often mention around here, I have a very simple model of how everything is securities fraud:

I have to emphasize that this is not a complete and accurate statement of the law. In fact, sometimes those four steps occur and then a judge says “no come on this is not securities fraud, this is just a different sort of bad thing,” and dismisses the case. My model is a useful tool for predicting lawsuits, and I think it provides a certain insight into the deep structure of U.S. securities law, but it is not, like, literally the law.