Badger v. Paulson Investment Co., Inc.

This is a civil case for damages arising from the sale of securities. The defendant, Paulson Investment Company (hereinafter referred to as Paulson), is an Oregon corporation engaged in the sale of securities as both a broker-dealer and an investment adviser. Two of Paulson’s “registered representatives,” Zbigniew Lambo and Scott Kennedy, 1 allegedly engaged in fraudulent securities practices and the sale of unregistered securities. 2 The plaintiffs seek to hold Paulson liable for the acts of Lambo and Kennedy on an agency theory. 3

The record contains the following evidence, which we set…