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Hollinger v. Titan Capital Corp.
United States Court of Appeals for the Ninth Circuit
914 F.2d 1564 (1990)
Emil Wilkowski was a securities salesman convicted of securities fraud. Wilkowski had worked with Titan Capital Corp. (defendant) without being registered with the National Association of Securities Dealers (NASD), as required. It was later discovered that Wilkowski had been convicted of fraud on a separate occasion prior to the fraud in question in this matter; a fact that would have been discovered had Titan waited to employ Wilkowski until he had been registered with NASD. The victims (Hollinger) (plaintiffs) of Wilkowski’s fraud then brought a civil suit against Titan. The district court ruled in favor of Titan, stating that it could not be held secondarily liable for the fraud because Wilkowski was an independent contractor. Hollinger then appealed to the Ninth Circuit Court of Appeals.
Rule of Law
Holding and Reasoning (Norris, J.)
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