Lawyer Can’t Beat Back SEC’s ‘Sell Shares, Get Paid’ Case

An attorney failed in his bid to shut down SEC allegations he wrote misleading opinion letters after a federal judge declined to dismiss the case against him.

Norman T. Reynolds, a Houston-based securities attorney, faces Securities and Exchange Commission allegations he wrote misleading opinion letters for Mustafa David Sayid’s shell companies, allowing Sayid to freely trade otherwise restricted shares. Sayid, an attorney in New York, also faces SEC allegations.

U.S. District Court for the Southern District of New York Judge John F. Keenan Jan. 10 denied Reynolds’ motion to dismiss. Reynolds said he shouldn’t be liable for the false statements ...