In this task, you will be shown a prompt from a judicial decision and multiple holding statements derived from citations following text in a legal decision.  Holdings represent the governing legal rule when the law is applied to a particular set of facts. There are five answer choices for each citing text. The correct answer is the holding statement that corresponds to the citing text. The four incorrect answers are other holding statements. You should find the correct option. There is a <HOLDING> token in the position of the citing text prompt where the holding statement was extracted.
--------
Question: (3) the de fendant’s culpability in the fraud perpetrated by the controlled person. See Securities & Exchange Com’n v. First Jersey Securities, Inc., 101 F.3d 1450, 1472 (2d Cir.1996). First, as the Court has found, plaintiffs have failed properly to plead a violation of the 1934 Act. Second, as we also have noted, plaintiffs have failed properly to allege scienter and/or culpability on the part of “Merrill Lynch.” Even had we found a properly pled violation of the 1934 Act, we would not automatically impute this violation to “Merrill Lynch” as a controlling entity. See Baesa, 969 F.Supp. at 242 (“[T]he law in this circuit is clear that a subsidiary’s fraud cannot be automatically imputed to its corporate parent.”). See also Chill v. General Elec. Co., 101 F.3d 263, 270 (2d Cir.1996) (<HOLDING>). Novak, 997 F.Supp. at 435. Finally the Court 
 Holding statements: (A) holding that a parent must exercise some control over the subsidiarys activities which does not require that the subsidiary be controlled to an ultimate degree by its parent  although something more than mere passive investment by the parent is required the parent must have and exercise control and direction  over the affairs of its subsidiary in order for venue to be proper (B) holding that district court has the power to decide what portion of subsidiarys income should be reallocated to its parent (C) holding that a parent company would at the very least have to have been deliberately blind to its subsidiarys fraud in order to have the requisite scienter (D) holding that even in separate trial other crimes evidence would not have been admissible and identification testimony would have been admissible (E) holding that a subsidiarys contacts can be imputed for purposes of service of process where a parent uses the subsidiary to do what it otherwise would have done itself 

Answer: (C)


Question: testified that Gollapudi admitted that he prepared and signed the W-2 forms and that they were false. Additionally, although Gollapudi presented evidence that the withholding amounts were true based on his “gross up” method, the District Court found this theory to be without merit based on the testimony of another IRS agent who demonstrated that no withholding was actually made. Moreover, it was established that the alleged withholding was never submitted to the IRS, but rather, was maintained in Gollapudi’s corporate checking account. Furthermore, Gollapudi’s reliance on Reynolds and Borman is misguided. Both of those cases involved § 7206(1) charges for filing the wrong tax form. Reynolds, 919 F.2d at 437 (“Using the wrong form does not violate § 7206(1).”); Borman, 992 F.2d at 126 (<HOLDING>). Furthermore, in Reynolds, the theory in the 
 Holding statements: (A) holding that materiality is not an element of  1542 because any false statement is sufficient (B) holding that plaintiff failed to prove reasonable reliance on a false statement (C) holding that form 4790 is not an administrative rule but is merely incidental to the statute and regulations and therefore false statements on the form can lead to criminal prosecution (D) holding that filing of improper form is not enough to establish false statement for  72061 purposes (E) holding that a false schedule c is an integral part of a tax return and is incorporated therein by reference thus giving rise to liability under  72061

Answer: (D)


Question: The administrative record contains no written approval or signature of the Interchange Project as a whole by FHWA in the November / December 2001 time-frame, although it does reflect that FHWA signed off on the ConnDOT requested design exceptions on the same day they were requested, November 9, 2001. File 238 at 17. The Court regrets the lack of clarity on this critical issue of the date of final design approval given how important that date is to the Section 4(f) process. Nonetheless, a presumption of regularity attaches to agency representations and decisions. See, e.g., Overton Park, 401 U.S. at 419, 91 S.Ct. 814, (“The designation of the Administrative Record ... is entitled to a presumption of administrative regularity.”); Miley v. Principi, 366 F.3d 1343, 1347 (Fed.Cir.2004) (<HOLDING>). Therefore, in view of this presumption of 
 Holding statements: (A) holding that conditional guilty pleas are valid when entered into in accordance with certain standards (B) holding that statements are admissible in absence of showing that parents were not notified in accordance with statute (C) recognizing that the general rule that a ministerial officer cannot in a judicial proceeding attack the validity of a law imposing duties on him is subject to the exception that such a law may be challenged where it involves the disbursement of public funds (D) recognizing that a court may reverse the pelrbs actions where those actions are arbitrary capricious or an abuse of discretion    not supported by substantial evidence on the record taken as a whole or otherwise not in accordance with law (E) holding that the presumption of regularity may be employed to establish that certain ministerial steps were taken in accordance with the requirements of law

Answer:
(E)