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UNITED STATES v. STONE

No. 354, Docket 26088.

282 F.2d 547 (1960)

UNITED STATES of America, Appellee, v. Michael STONE, Defendant-Appellant.

United States Court of Appeals Second Circuit.

Decided July 18, 1960.

Rehearing Denied October 3, 1960.

Attorney(s) appearing for the Case

Irving Younger, Asst. U. S. Atty., Forest Hills, N. Y. (S. Hazard Gillespie, Jr., U. S. Atty., for the Southern Dist. of New York, and Otis Pratt Pearsall, Asst. U. S. Atty., New York City, on the brief), for appellee.

Palmer, Masia & Palmer, New York City, for defendant-appellant.

Before LUMBARD, Chief Judge, and HAND and FRIENDLY, Circuit Judges.

FRIENDLY, Circuit Judge.

Michael Stone was engaged in the business of manufacturing and selling ladies' dresses. He did this through a corporation, Ellen-Joan Fashions, Inc. His wife Anita was the corporation's president, a director and sole stockholder; Michael was a director and had the title of secretary. In fact Anita performed no significant services for the corporation, which Michael ran. On June 24, 1955, Ellen-Joan Fashions, Inc. filed a petition for an arrangement...

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