Adrian,the chief executive officer of Beds n' Sofas,Inc.,inten-tionally understates the amount of Beds n' Sofas'sdebts in information provided to investors as part of an issue of Beds n' Sofasstock.Cassie buys the stock and suffers a loss. Adrian may be subject to

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Adrian intentionally provided misleading information to investors, which is considered securities fraud. This is both a criminal offense, which could lead to government prosecution, and a civil offense that could lead to Cassie's lawsuit. Therefore, he may be subject to both government prosecution and Cassie's suit. Negative publicity may also result, but it is not the only consequence Adrian would face.

Adrian,the Chief Executive Officer of Beds N' Sofas,Inc