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SMITH v. AMERICAN INDUS. RESEARCH CORP.

Nos. 80-1842, 81-1034 and 81-1384.

665 F.2d 397 (1981)

Frances SMITH, et al., Plaintiffs, Appellees, v. AMERICAN INDUSTRIAL RESEARCH CORPORATION, et al., Defendants, Appellees, Antonio Cobbuzi, et al., Plaintiffs, Appellants. Frances SMITH, et al., Plaintiffs, Appellees, v. AMERICAN INDUSTRIAL RESEARCH CORPORATION, et al., Defendants, Appellees, Daniel B. Bickford, Receiver, Defendant, Appellant. Frances SMITH, et al., Plaintiffs, Appellees, v. AMERICAN INDUSTRIAL RESEARCH CORPORATION, (AIRCO) et al., Defendants, Appellees, Daniel B. Bickford, Receiver, Defendant, Appellant.

United States Court of Appeals, First Circuit.

Decided November 16, 1981.

Attorney(s) appearing for the Case

Ronald F. Kehoe, Boston, Mass., with whom Haussermann, Davison & Shattuck, Boston, Mass., Alan L. Grenier, and Ardiff, Ardiff & Morse, Danvers, Mass., were on brief, for plaintiffs, appellants.

Jeffrey M. Smith, Boston, Mass., with whom Paul T. Smith, and Harvey R. Peters, Boston, Mass., were on brief for plaintiffs, appellees, Frances Smith, et al.

Rosalind C. Cohen, Asst. Gen. Counsel, Washington, D. C., with whom Ralph C. Ferrara, Gen. Counsel, Thomas P. Lemke, Atty., Securities and Exchange Commission, and Paul Gonson, Sol., Washington, D. C., were on brief, for the Securities and Exchange Commission, amicus curiae.

Before COFFIN, Chief Judge, BREYER, Circuit Judge, and BONSAL, District Judge.

BREYER, Circuit Judge.

In September 1974, the Securities and Exchange Commission ("SEC") brought a fraud action in the Massachusetts federal district court against J & B Industries, American Industrial Research Corporation, and others (all of whom we shall refer to generically as the "AIRCO defendants"). The case was assigned to Senior Judge Murray, who, at the SEC's request appointed a receiver, Daniel Bickford, "to protect and preserve the defendants' property...

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