On 2/22/17, a federal court jury in Miami, FL, convicted Christopher Hall, former chairman of a public company that operated a horse racetrack, finding him liable for violating the antifraud provisions of the federal securities laws.

According to the SEC complaint, …  from 1999 through 2008 Hall obtained tens of millions of dollars in margin loans from brokerage firm Penson Financial Services, mainly to purchase municipal bonds and to fund the racetrack's operating expenses. When the collateral underlying Hall's margin loans plummeted in value in the wake of the financial crisis, Hall pledged additional collateral to support his margin debt. Hall repeatedly lied to Penson about liens on his additional collateral while obtaining fraudulently over $5.5 million in additional loans and other payments from the firm.

The SEC seeks disgorgement of ill-gotten gains plus interest, penalties, an officer-and-director bar.