On June 4, 2013, the United States District Court for the Southern District of New York denied a motion to dismiss the SEC’s claim that defendant Fabrice Tourre violated Section 17(a) of the Securities Act of 1933 based on an offer to sell collateralized debt obligations originating in the U.S. but consummated overseas. SEC v. Tourre, No. 10-3229 (S.D.N.Y. June 4, 2013). Tourre argued that the SEC’s claims were precluded by the U.S. Supreme Court's decision in Morrison v. National Australia Bank, which narrowed the scope of liability under Section 10(b) of the Securities Exchange Act of 1934 to domestic transactions. In denying the motion to dismiss, the court addressed how to apply Morrison to claims under Section 17(a), which bars fraud “in the offer or sale” of a security. The court noted that the scope of Section 17(a) was different than Section 10(b) of the Securities Exchange Act of 1934, which Morrison addressed. Unlike Section 10(b), which bars fraud with the “purchase or sale” of a security, Section 17(a) makes it illegal to make fraudulent offers and, thus, “extends beyond consummated transactions.” The court reasoned that “[t]his means that a domestic offer may be actionable regardless of whether it results in a sale” that is ultimately consummated overseas.