On September 14th, a federal district court held that a defendant who misrepresents his trading activity prior to signing stock purchase agreements ("SPAs") in private investments in public offerings ("PIPEs") of stock commits securities fraud. The misrepresentations were material because they involved information that alter a reasonable person's decision. Had the issuers known defendant had bought their stock with knowledge of the PIPE but before signing the SPA, they would not have sold the PIPE shares to defendant. SEC v. Berlacher. See also SEC Lit.Rel.No. 20278.