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The elements of a Rule 10b-5 claim based on allegations that a defendant broker engaged in fraudulent conduct by recommending that the plaintiff purchase securities that were an unsuitable investment are 1) the broker recommended (or, in the case of a discretionary account, purchased) securities which are unsuitable in light of the investor's objectives; (2) the broker recommended or purchased the securities with an intent to defraud or with reckless disregard for the investor's interests; and (3) the broker exercised control over the investor's account.

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Contributed in 2008 by David Gold
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