Attorneys for three Alabama individuals, including Birmingham Mayor Larry Langford, last week filed a motion to dismiss Securities and Exchange Commission fraud charges on the grounds that it has no jurisdiction over security-based swap agreements such as the ones that the defendants participated in with Jefferson County, Ala.

The motion, filed with the U.S. District Court of Alabama on June 30, essentially uses the same argument made in January when Langford and broker-dealer William Blountargued against testifying in an SEC investigation of the county's swaps and derivatives in a federal court in Florida, arguing that the SEC does not have jurisdiction over derivatives because they are not securities.

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