15 U.S.C. § 687f — Unlawful acts and omissions by officers, directors, employees, or agents

(a) Violation by licensee^* deemed violation by persons participating Wherever a licensee violates any provision of this chapter or regulation issued under it by reason of its failure to comply with the terms of it or by reason of its engaging in any act or practice which constitutes or will constitute a violation of it, such violation will be treated as to be also a violation and an unlawful act on the part of any person who, directly or indirectly, authorizes, orders, participates in, or causes, brings about, counsels, aids, or abets in the commission of any acts, practices, or transactions which constitute or will constitute, in whole or in part, such violation.

(b) Breach of fiduciary duty It must be unlawful for any officer, director, employee, agent, or other participant in the management or conduct of the affairs of a licensee to engage in any act or practice, or to omit any act, in breach of his fiduciary duty as such officer, director, employee, agent, or participant, if, as a result of it, the licensee has suffered or is in imminent danger of suffering financial loss or other damage.

(c) Disqualification of officers and employees for dishonesty, fraud, or breach of trust Except with the written consent of the Administration^*, it must be unlawful—
(1) for any person after this to take office as an officer, director, or employee of a licensee, or to become an agent or participant in the conduct of the affairs or management of a licensee, if—
(A) he has been convicted of a felony, or any other criminal offense involving dishonesty or breach of trust, or
(B) he has been found civilly liable in damages, or has been permanently or temporarily enjoined by an order, judgment, or decree of a court of competent jurisdiction, by reason of any act or practice involving fraud or breach of trust; or
(2) for any person to continue to serve in any of the above-described capacities, if—
(A) he is after this convicted of a felony, or any other criminal offense involving dishonesty or breach of trust, or
(B) he is after this found civilly liable in damages, or is permanently or temporarily enjoined by an order, judgment, or decree of a court of competent jurisdiction, by reason of any act or practice involving fraud or breach of trust.