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SECURITIES & EXCH. COM'N v. WENCKE

No. 78-1395.

622 F.2d 1363 (1980)

SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. Walter WENCKE et al. SUPERIOR MOTELS, INC., Petitioner-Appellant, v. R. N. GOULD and Securities and Exchange Commission, Receiver and Real Party in Interest and Appellee.

United States Court of Appeals, Ninth Circuit.

June 9, 1980.

Attorney(s) appearing for the Case

Alex A. Harper, Craig W. Walker, Michael G. Zybala, San Diego, Cal., for Securities and Exchange Commission.

Faber L. Johnston, Johnston, Miller & Giannini, San Jose, Cal., for Wencke, et al.

Before WRIGHT, KENNEDY and TANG, Circuit Judges.

KENNEDY, Circuit Judge:

A district court may appoint a receiver in a securities fraud action brought by the Securities and Exchange Commission (SEC). The somewhat novel question presented by this appeal is whether a district court may also issue a stay, effective against nonparties and without prior notice to them, prohibiting "all investors, creditors, and other persons" from "[c]ommencing, prosecuting, continuing or enforcing any suit" against the receivership entities...

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