UNITED STATES v. SCHWENOHA

No. 71, Docket 31240.

383 F.2d 395 (1967)

UNITED STATES of America, Appellee, v. Vincent SCHWENOHA and Nathan Suess, Appellants.

United States Court of Appeals Second Circuit.

Decided September 28, 1967.


Attorney(s) appearing for the Case

Frederick F. Greenman, Jr., Asst. U. S. Atty. (Robert M. Morgenthau, U. S. Atty., Southern Dist. of New York, Robert G. Morvillo, Pierre N. Leval, Asst. U. S. Attys., of counsel), for appellee.

Samuel Rowe, New York City, for appellants.

Before MOORE, SMITH and KAUFMAN, Circuit Judges.


IRVING R. KAUFMAN, Circuit Judge:

This appeal reveals a typical stock fraud upon the public which the Securities Act of 1933, 15 U.S.C. § 77a et seq., was designed to prevent. Vincent Schwenoha purchased in 1956 all the outstanding stock of the Belmont Divide Mining Corporation, a paper corporation that had ceased doing business in 1924. He and others devised a plan to sell this worthless stock to the public without...

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