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UNITED STATES v. LILLEY

Crim. Nos. 67-H-233, 68-H-228.

291 F.Supp. 989 (1968)

UNITED STATES of America v. Lester L. LILLEY. UNITED STATES of America v. Malcolm G. BAKER, Jr.

United States District Court S. D. Texas, Houston Division.

October 2, 1968.

Attorney(s) appearing for the Case

U. S. Atty., Morton Susman, and Asst. U. S. Atty., Malcolm Dimmitt, for the United States.

Wayne Fisher, of Fisher, Roch, Sales & Blackstock, Houston, Tex., for Lester L. Lilley.

Walter P. Zivley of Liddell, Dawson, Sapp & Zivley, Houston, Tex., for Malcolm G. Baker, Jr.

MEMORANDUM OPINION:

NOEL, District Judge.

These are related cases arising out of the collapse of Westec Corporation in August 1966. Both defendants are charged with violations of SEC Rule 10b-5, which provides as follows:

It shall be unlawful for any person, directly or indirectly, by the use of any means or instrumentality of interstate commerce, or of the mails, or of any facility of a national securities exchange, (1) to employ any...

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