Atlanta Skin & Cancer Clinic, P.C. v. Hallmark General Partners, Inc.

This case presents the novel question of the liability of a lending institution under the South Carolina Uniform Securi ties Act when it loans money to serve as capital for an investment promoted by the fraudulent acts of others. Respondents/Appellants (hereinafter “Investors”) sued First Federal Savings & Loan Association of South Carolina (hereinafter “First Federal”) and various other parties (hereinafter “Hallmark Defendants”), alleging that First Federal aided, abetted, and controlled the Hallmark Defendants in the commission of various state securities statute violations. Upon careful…