Roland Staemphfli was employed as the chief financial officer of Honeywell Bull, S.A. (HB), a Swiss computer company operating exclusively in Switzerland. Staemphfli purportedly arranged financing for HB in Switzerland through the issuance of promissory notes. He had the assistance of Fidenas, a Bahamian company dealing in commercial paper. Unknown to Fidenas, the HB notes were fraudulent. The notes were prepared and forged by Staemphfli, who lost all of the proceeds in a speculative investment and was convicted of criminal fraud. HB denied responsibility for the fraudulently issued notes when they came due. Fidenas’s business deteriorated because of its involvement with the HB notes. It sued HB and others in the United States for violations of U.S. securities laws. HB defended, arguing that the U.S. court did not have jurisdiction over the transactions in question. Decide. [Fidenas v Honeywell Bull, S.A., 606 F2d 5 (2d Cir)]