Cir. 2014)] (See The
42-7. Securities Act of 1933. Big Apple Consulting USA,
Inc., provided small publicly traded companies with a variety
of services, including marketing, business planning, and Web
site development and maintenance. CyberKey Corp. sold cus-
tomizable USB drives. CyberKey falsely informed Big Apple
that CyberKey had been awarded a $25 million contract
with the Department of Homeland Security. Big Apple used
this information in aggressively promoting CyberKey's stock
and was compensated for the effort in the form of CyberKey
shares. When the Securities and Exchange Commission (SEC)
began to investigate, Big Apple sold its shares for $7.8 million.
The SEC filed an action in a federal district court against Big
Apple, alleging a violation of the Securities Act of 1933. Can
liability be imposed on a seller for a false statement that was
made by someone else? Explain. [U.S. Securities and Exchange