TIMETRUST v. SECURITIES AND EXCHANGE COMMISSION

No. 9823.

130 F.2d 214 (1942)

TIMETRUST, Inc., et al. v. SECURITIES AND EXCHANGE COMMISSION.

Circuit Court of Appeals, Ninth Circuit.

July 31, 1942.


Attorney(s) appearing for the Case

Keyes & Erskine and Louis Ferrari, all of San Francisco, Cal., for appellant Bank of America and another.

Dreher, McClellan & McCarthy, of San Francisco, Cal., for appellant A. P. Giannini.

John L. McNab, of San Francisco, Cal., for appellant J. M. Grant.

Bacigalupi, Elkus & Salinger and Claude N. Rosenberg, all of San Francisco, Cal., and Gumpert & Mazzera and Harry A. Mazzera, all of Stockton, Cal., for appellants Timetrust, Inc., et al.

Chester T. Lane, Gen. Counsel, C. Christopher M. Jenks, Asst. Gen. Counsel, and J. Leonard Townsend, Sp. Counsel, all of Philadelphia, Pa. (Douglas M. Orr and H. Gardner Putnam, both of Philadelphia, Pa., of counsel), for appellee.

Before WILBUR, DENMAN, and MATHEWS, Circuit Judges.


WILBUR, Circuit Judge.

This action was brought by the Securities and Exchange Commission, a federal agency, to obtain an injunction prohibiting the appellants from continuing operating a plan denounced by the complaint as a "device, scheme or artifice to defraud", for the purpose of selling the capital stock of the appellant bank. Briefly stated, the plan permitted the purchase of such stock by pooling the monthly payments of the various purchasers, and the purchase...

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