The fraudulent, criminal, or other seriously improper conduct of any officer, director, shareholder, partner, employee, or other Individual associated with a Participant may be imputed to the Participant when the conduct occurred in connection with the Individual's performance of duties for or on behalf of the Participant, or with the Participant's knowledge, approval, or acquiescence. The Participant's acceptance of the benefits derived from the conduct shall be presumptive evidence of such knowledge, approval, or acquiescence.
The fraudulent, criminal, or other seriously improper conduct of a Participant maybe imputed to any officer, director, shareholder, partner, employee, or other Individual associated with the Participant who participated in, knew of, or had reason to know of the Participant's conduct.
The fraudulent, criminal, or other seriously improper conduct of one Participant in a joint venture or similar arrangement may be imputed to other Participants if the conduct occurred for or on behalf of the joint venture or similar arrangement or with the knowledge, approval, or acquiescence of the Participants. Acceptance of the benefits derived from the conduct shall be presumptive evidence of such knowledge, approval or acquiescence.
2 CCR 601-10-3.08