On August 20th, the Eighth Circuit held that plaintiffs stated a claim for control person liability against a broker-dealer whose registered representative conducted a Ponzi scheme, even though the fraud was conducted through a third-party brokerage firm. The defendant broker-dealer gave its registered representative access to the markets and had a duty to monitor him. Additionally, Eight Circuit law provides that culpable participation by an alleged control person in the primary violation is not an element of the claim. Lustgraaf v. Behrens.