when in fact Defendants refused to honor such requests. In addition, Defendants failed to inform pool participants that PMC was losing money trading forex in an effort to convince pool participants to maintain their investments or invest additional funds. False statements made to solicit prospective pool participants constitute a violation of Section 4b. Capitalstreet Financial, LLC, 2012 WL 79758 at *7 (quoting Saxe v. E.F. Hutton & Co., 789 F.2d 105, 111 (2d Cir.1986) (“Material misrepresentations about the nature of the organization handling [an] account, the people [dealt] with, and the type of trading [the] funds were used for’ would be sufficient to state a cause of action pursuant to the [Act].”)). Accord Hirk v. Agri-Research Council, Inc., 561 F.2d 96, 103-04 (7th Cir.1977) (<HOLDING>). ii Defendants Acted With Scienter The
holding that defendants representation that plaintiff would lose no more than 7500 and omission of high risk was a violation of section 4b of the act holding no violation of the travel act holding plaintiff failed to present evidence of actual malice because defendants explanation of the mistaken statement shows negligence but no more than that holding a violation of the travel act holding that a violation of the act founded upon a material omission must be deliberate