# kaal:claim:2811718-030

**Claim.** Funds that promise due diligence with no intention of actually carrying it out violate federal securities laws rather than merely breaching a contract.

**Type.** condition  **Support.** evidenced

**Holds when.**

- In re J.P. Jeanneret Associates
- promises made without intent to perform

**Source quote.**

> but it has been held that funds that promise due diligence and yet have no intention of actually carrying it out are violating federal securities laws rather than breaching basic contracts.

**From.** Wulf A. Kaal, *Private Fund Investor Due Diligence – Evidence from 1995 to 2015* (2016), III.B.3. Impact of the Madoff Ponzi Scheme, page 46

**Cite as.** Wulf A. Kaal, Private Fund Investor Due Diligence – Evidence from 1995 to 2015 (2016). SSRN: https://ssrn.com/abstract=2811718

**Verify.** sha256 of source PDF `b52152af561288173840a1cabbcf8f4b337e73507c856ee01600799073f4156f` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202016%20-%20Private%20Fund%20Investor%20Due%20Diligence%20%E2%80%93%20Evidence%20from%201995%20to%202015.pdf

**Topics.** securities-law, law-and-legal-systems

**Keywords.** securities-fraud, breach-of-contract, due-diligence-promises, legal-standards

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