More important, he has the most powerful weapon in any state, an 81-year-old statute known as the Martin Act.

But the judge ruled that the Martin Act applies to any tenant renting from someone other than a "purchaser under the plan."

The Martin Act does not say that a sponsor must sell all the apartments, or even any, after the offering plan is declared effective.

One of the changes would expand the Martin Act to encompass health care, a statute he used to great effect to pursue securities fraud.

In a civil case, the burden of proof is lower, and judges are more open to creative uses of the Martin Act.

The Martin Act gave him a frightening amount of power, and he didn't hesitate to use it.

Specifically, the Court of Appeals said in a 21-page opinion that the Martin Act, which is known as the blue sky law.

It was that interpretation of the Martin Act, he said, that resulted in the ruling for the sponsor.

He made a name for himself by taking out of mothballs the Martin Act, a 1921 state law giving the attorney general jurisdiction over securities trading.

Charges of criminal fraud against those involved in the payouts could be brought under the 1921 Martin Act.