Justices reject new colleague's arguments in fraud case

The Supreme Court is rejecting arguments made by Justice Brett Kavanaugh when he was an appeals court judge in a case involving securities fraud.

The court's 6-2 ruling Wednesday affirms an appeals court decision against investment banker Francis Lorenzo over false and misleading statements Lorenzo sent in emails to potential investors in a company. The emails described the company as having assets of $10 million when Lorenzo knew the real figure was $400,000.

Kavanaugh had dissented from the appellate ruling. He took no part in the high court case.

Justice Stephen Breyer's majority opinion rejected Lorenzo's argument that he did not violate Securities and Exchange Commission anti-fraud regulations because he merely sent the emails at the direction of his boss, who supplied the messages' contents.