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STATE v. DIACIDE DISTRIBUTORS, INC.

No. 95-1006.

561 N.W.2d 369 (1997)

STATE of Iowa ex rel. Craig A. GOETTSCH, Appellant, v. DIACIDE DISTRIBUTORS, INC., Kathleen M. Starnes, Larry E. Kellogg, Bruce E. Nelson, Richard C. Johnson, J.R. Grady, Herman Tripp, and White Mountain of America, Inc. a/k/a White Mountain Natural Products, Inc., Defendants, and Sam McHose, Appellee.

Supreme Court of Iowa.

Rehearing Denied April 18, 1997.

Attorney(s) appearing for the Case

Thomas J. Miller, Attorney General, and Anuradha Vaitheswaran, Assistant Attorney General, for Appellant.

J. Russell Hixson of Dickinson, Mackaman, Tyler & Hagen, P.C., Des Moines, for Appellee.

Considered by LARSON, P.J., and CARTER, LAVORATO, SNELL, and TERNUS, JJ.

LAVORATO, Justice.

This securities fraud case brought by the State pursuant to Iowa Code chapter 502 (1993) raises several questions. First, what is the appropriate standard of proof for actions brought under chapter 502? Second, can the State use aiding and abetting to establish secondary liability for securities fraud under chapter 502? Third, can the State seek remedies against an alleged aider and abettor under the State's enforcement provisions in Iowa Code section...

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