"... The failure of the SEC and other regulatory agencies in continuing to ignore the false accounting statements is in violation with the mandates of Congress to enforce the accuracy of the statements being presented to the investing public. The SEC is therefore facilitating in the fraud.
Section 20 of the securities Act of 1934 addresses the involvement of those that aid and abet in the facilitation of securities fraud.
e. Prosecution of persons who aid and abet violations
For purposes of any action brought by the Commission under paragraph (1) or (3) of section 21(d), any person that knowingly provides substantial assistance to another person in violation of a provision of this title, or of any rule or regulation issued under this title, shall be deemed to be in violation of such provision to the same extent as the person to whom such assistance is provided .....
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