§ 7.2.3

• Jurisdiction: Arizona

§ 7.2.3 Bankruptcy

In 2002, Congress enacted legislation to prevent securities violators from using bankruptcy to defend common-law securities violations.²¹⁰¹ Under the Sarbanes-Oxley Act, "common law fraud, deceit, or manipulation in connection with the purchase or sale of any security" is nondischargeable in bankruptcy.²¹⁰²

--------

Notes:

^[2101] See Sarbanes-Oxley Act of 2002, Pub. L. No. 107-204, § 803, 116 Stat. 745, 801 (codified at 11 U.S.C. §523(a)(19) (2016)); see also supra § 5.1.10.3 (discussing...