The Investors’ Control of Their Investment Advisers. Who Has the Final Word?

TAMAR FRANKEL

BU Law emerita professor Tamar Frankel discusses an emerging issue affecting financial advisers—when a client may exercise control over the actions of the adviser. Frankel relates the story of an investment adviser that did not follow the client’s orders to cease certain investments, at a cost of almost $5 million to the client. As Frankel explains, the Securities and Exchange Commission (SEC) got involved, resulting in the investment adviser’s settlement for a significant payment to the client and other conditions.

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Idaho v. Roth

Docket: 46377

Opinion Date: February 13, 2020

Judge: Bevan

Areas of Law: Constitutional Law, Criminal Law

In 2011, a district court granted Aaron Roth a temporary furlough while he was in jail for a probation violation. Under the furlough order, Roth was released from custody. Roth failed to return. In 2017, six years after he absconded, Roth was arrested and later charged with escape, a felony under Idaho Code section 18-2505. A jury found Roth guilty of escape. Roth then moved the district court for a judgment of acquittal under Idaho Criminal Rule (“I.C.R.”) 29, or in the alternative, to dismiss pursuant to I.C.R. 48(a)(2). The district court granted the motion to dismiss under I.C.R. 48(a)(2). The State appealed the district court’s dismissal. After review, the Idaho Supreme Court concluded the district court abused its discretion by dismissing Roth's case. "This ruling extended the reach of due process too far. ... Due process is not a rigid standard and is satisfied when a defendant is provided notice and an opportunity to be heard. Roth had his opportunity to be heard and was sufficiently notified of the furlough order’s requirements to satisfy due process based on the district court explaining the details of the furlough order on the record at the arraignment hearing. The fact, as found by the district court, that Roth did not receive a written copy of the furlough order does not vitiate the notice that Roth had received in court from the judge." The Supreme Court reversed dismissal and remanded for further proceedings.