JSC Securities, Inc. v. Gebbia
This Memorandum Opinion and Order addresses motions for summary judgment in three related federal actions stemming from alleged securities fraud. Plaintiffs, including JSC Securities, Inc., Horgan, and Beatus plaintiffs, asserted violations of the Securities and Exchange Act, RICO, common law fraud, and fraudulent conversion against various defendants following a securities transaction and subsequent default. The court applied principles of res judicata and collateral estoppel, giving preclusive effect to a prior NYSE arbitration award that had largely denied similar claims against some defendants. Consequently, the motions for summary judgment in the JSC and Horgan actions were granted, dismissing federal claims against Securities Group Defendants, The Jesup Group, and UPAC. All remaining state law claims were also dismissed due to the absence of federal subject matter jurisdiction, and a pre-trial conference was scheduled for the Beatus action.