【M3S1-24】Jacques Lagarde, CFA, is a sell-side analyst at Springhill Financial, asmall investment bank. Springhill is the lead manager for the equity offering ofChorale Music. Lagarde is not part of the IPO team for this offering. While finalizinga research report on Chorale, Lagarde discovers inconsistencies that makes himbelieve the company may have concealed losses in its leasing division last quarterthat would significantly reduce its earnings. Lagarde suspects that Springhill’sinvestment banking team is aware of these unreported losses. The prospectus forChorale’s equity offering has already been approved by regulators and distributedto potential investors. According to the Standards, Lagarde should most likely: