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UNITED STATES v. MINUSE

No. 223.

142 F.2d 388 (1944)

UNITED STATES v. MINUSE et al.

Circuit Court of Appeals, Second Circuit.

April 20, 1944.

Attorney(s) appearing for the Case

Stanley Ide LaCov, of New York City, for appellant Minuse.

John Kadel, of New York City, for appellant Pelletier.

James B. M. McNally, U. S. Atty., of New York City (Harold J. McAuley, Asst. U. S. Atty., of New York City, of counsel), for appellee.

Before L. HAND, SWAN, and AUGUSTUS N. HAND, Circuit Judges.

SWAN, Circuit Judge.

The appellants, Norman W. Minuse and Joseph E. Pelletier, under the name of N. W. Minuse & Company, traded upon the New York Curb Exchange in Tastyeast class A stock. In 1935 they obtained an option from one Levy on 73,000 shares of the stock and thereafter by means of "wash sales", "matched sales" and "dummy" accounts they manipulated and inflated the price of the stock above the prices stated in their option so that they could unload the...

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