S.E.C. v. MORRONE

No. 19-2006, No. 19-2007.

997 F.3d 52 (2021)

SECURITIES AND EXCHANGE COMMISSION, Plaintiff, Appellee, v. Jonathan MORRONE, individually and d/b/a JM International, Inc., Defendant, Appellant, Z. Paul Jurberg, individually and d/b/a Brookline Capital Partners, Inc.; Anthony Orth, individually and d/b/a Grand Traverse Equities, Inc.; May's International Corporation, Defendants, Brett Hamburger, d/b/a JCBH Consulting, LLC, Defendant/Third-Party Plaintiff, Bio Defense Corporation; Michael Lu, individually and d/b/a May's International Corporation, Defendants/Third-Party Defendants, David Smith; ONEighty C Technologies, Third-Party Defendants. Securities and Exchange Commission, Plaintiff, Appellee, v. Z. Paul Jurberg, individually and d/b/a Brookline Capital Partners, Inc., Defendant, Appellant, Jonathan Morrone, individually and d/b/a JM International, Inc.; Anthony Orth, individually and d/b/a Grand Traverse Equities, Inc.; May's International Corporation, Defendants, Brett Hamburger, d/b/a JCBH Consulting, LLC, Defendant/Third-Party Plaintiff, Bio Defense Corporation; Michael Lu, individually and d/b/a May's International Corporation, Defendants/Third-Party Defendants, David Smith; ONEighty C Technologies, Third-Party Defendants.

United States Court of Appeals, First Circuit.

May 10, 2021.


Attorney(s) appearing for the Case

Steven M. Kaplan , with whom Rosenfeld & Kaplan, L.L.P., New York, NY, was on brief, for appellants.

Theodore Weiman , Senior Litigation Counsel, Securities and Exchange Commission, with whom Michael A. Conley , Acting General Counsel, Securities and Exchange Commission, and Tracey A. Hardin , Assistant General Counsel, Securities and Exchange Commission, were on brief, for appellee.

Before Lynch, Lipez, and Thompson, Circuit Judges.


Appellants Jonathan Morrone and Z. Paul Jurberg were senior officers at Bio Defense Corporation, a United States company whose stated purpose was to develop and sell a machine to clean and decontaminate mail. The United States Securities and Exchange Commission ("SEC") alleged that Morrone and Jurberg solicited investments...

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