Randall Fincke was the founder, director, and officer of Access Cardiosystems, Inc., a small start-up company that sold portable automated external heart defibrillators. Fincke prepared a business plan stating that Access's "patent counsel" had advised the firm that "its product does not infringe any patents." This statement was falsepatent counsel never offered Access any opinion on the question of infringement. Fincke gave this plan to potential investors, including Joseph Zimmel, who bought $1.5 million in Access shares. When the company later filed for Chapter 11 bankruptcy protection, Zimmel filed a complaint with the federal bankruptcy court, alleging that Fincke had violated the Massachusetts blue sky law. The court awarded Zimmel $1.5 million in damages, and the award was affirmed on appeal. Fincke had solicited investors "by means of" a false statement of material fact, in violation of the fraud provisions in the state's securities laws.