US Supreme Court to review scope of investor protection laws

The U.S. Supreme Court on Monday agreed to hear an appeal by a New York investment banker banned from the industry by the Securities and Exchange Commission in a case that could limit the scope of those who can be held liable under laws protecting investors from securities fraud.

The justices will review a lower court ruling that upheld most of the SEC’s liability findings against Francis Lorenzo, who served as the investment banking director at a broker-dealer called Charles Vista that was expelled from the securities industry in 2014. The case involved misleading emails he sent to investors about a financially struggling clean-energy company.

Reporting by Andrew Chung; Editing by Will Dunham