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UNITED STATES v. PALAKOW

No. 17867.

438 F.2d 1177 (1971)

UNITED STATES of America, acting For and On Behalf of SMALL BUSINESS ADMINISTRATION, Plaintiff-Appellant, v. Gertrude J. PALAKOW, as Executrix of the Estate of Marshall J. Palakow, Belvedere Investment Corporation, a Wisconsin Corporation, and Manuel Levin, Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

January 27, 1971.

Attorney(s) appearing for the Case

David J. Cannon, U. S. Atty., Milwaukee, Wis., William D. Ruckelshaus, Asst. Atty. Gen., Robert V. Zener, William D. Appler, Attys., Dept. of Justice, Washington, D. C., for plaintiff-appellant.

Robert L. Hersh, Harry Lensky, A. L. Skolnik, Emil Hersh, Arthur Magidson, Milwaukee, Wis., for defendant-appellee Gertrude J. Palakow, as executrix of the estate of Marshall J. Palakow.

Before DUFFY, Senior Circuit Judge, and KILEY and FAIRCHILD, Circuit Judges.

KILEY, Circuit Judge.

The government has appealed from the district court's judgment1 dismissing its suit for an accounting to the Small Business Administration (SBA) by reason of defendant Palakow's alleged conversion of SBA's interest in a dissolved corporation. The court decided the suit was barred and dismissed the suit. We reverse and remand.

On September 30, 1959 SBA made a loan to Zitron Brothers Corporation upon the application...

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