The US Supreme Court ruled that an individual may be found liable for fraud under applicable securities laws when he knowingly disseminates false or misleading statements to potential investors even though he did not compose the false statements. The decision stems from an SEC enforcement action against Francis Lorenzo, an investment banker who was sanctioned by the agency for violating its anti-fraud rule. According to the SEC, Mr. Lorenzo, at the direction of his boss, knowingly sent emails drafted by his boss to potential investors that contained false information about the worth of an investment banking client’s assets. Mr. Lorenzo disputed the SEC’s action, claiming that he was not liable for fraud under the SEC’s anti-fraud rule because he was not the author of the false statement. Justice Stephen Breyer, writing the opinion, stated that it didn’t matter whether Mr. Lorenzo was responsible for drafting the false information; what mattered was that Mr. Lorenzo knew that he was sending false information to potential investors.