tag:blogger.com,1999:blog-12703782.post5667819402492659335..comments2020-04-11T03:30:02.282-05:00Gary R. Welshhttp://www.blogger.com/profile/15185079937305083438noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-12703782.post-47924903868821286962009-12-02T23:45:24.540-05:002009-12-02T23:45:24.540-05:00This is very thin.<br /><br />I&#39;m not sure Rokita&#39;s complaint passes the Howey test. The Complaint rests its entire subject-matter jurisdiction on this language: &quot;sharing investment returns earned by the ISTA entities.&quot; The rest of the Complaint is logrolling and pro forma padding.<br /><br />The &quot;investment&quot; is outlined in numbered paragraphs 14-17.<br /><br />It&#39;s going to be difficult for Rokita to prove that a return of association funds to association members rises to the level of a security. Associations regularly invest funds, and nobody else is due these funds but the association and its members - where the funds here were returned. <br /><br />Rokita seems to be going a long way to find a security. There is no allegation here that this plan was widely solicited to any and all comers, so this plan does not seem to be the sort of instrument that the Securities Act was created to prohibit.<br /><br />Indeed, insurance policies are not purchased with the expectation of profit and are quite clearly not securities, absent an explicit effort to make the policy have a variable return of an investment character. <br /><br />Rokita seems to be complaining that unspent insurance balances earned a return. What else are unneeded present funds supposed to do? Sit around dormant and become reduced through inflation?<br /><br />I still wish I could participate in Rooney&#39;s Health Savings Accounts, but I haven&#39;t seen one of those, for a while. <br /><br />Further, why is Rokita employing Frost Brown Todd when he has his own staff of securities attorneys? Was the representation competitively bid?<br /><br />Still further, Rokita&#39;s attorneys are required to have the Attorney General plead their cases before the state courts. I&#39;m not aware that the law was revised to allow a private firm to act in the stead of the A.G. and the Securities Division, simultaneously. This proceeding is truly unique.<br /><br />More Durham, less this, Rokita.Catohttps://www.blogger.com/profile/03341628086158209539noreply@blogger.comtag:blogger.com,1999:blog-12703782.post-34573248061183751522009-12-02T22:32:30.121-05:002009-12-02T22:32:30.121-05:00I think the question was more one of &quot;where has he been?&quot; <br /><br />But, if ISTA has been playing fast and loose, let the chips fall where they may --- so long as Rokita is an equal opportunity enforcer; something about which I&#39;m skeptical.Doughttps://www.blogger.com/profile/11424730556609713021noreply@blogger.com