S. E. C. v. SEABOARD CORP.

No. 79-3822.

677 F.2d 1315 (1982)

SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. The SEABOARD CORPORATION, etc., et al., Defendants. ADMIRALTY FUND; the Admiralty Fund Growth Series Litigation Trust and the Admiralty Fund Insurance Series Litigation Trust; the Income Fund of Boston, Inc.; the Income Fund of Boston, Inc.; Litigation Trust; Seaboard Leverage Fund, Inc.; the Seaboard Leverage Fund Litigation Trust, Cross-Claimants/Appellants, v. CITY NATIONAL BANK, Cross-Defendant/Appellee.

United States Court of Appeals, Ninth Circuit.

Decided May 24, 1982.


Attorney(s) appearing for the Case

Stephen H. Marcus, Greenberg, Bernhard, Weiss & Karma, Los Angeles, Cal., for cross-claimants/appellants.

Barbara Faye Stein, Beverly Hills, Cal., argued, for cross-defendant/appellee; Barbara Faye Stein, and Neil G. McCarroll II, Beverly Hills, Cal., on brief.

Before WRIGHT and WALLACE, Circuit Judges, and EAST, Senior District Judge.


EUGENE A. WRIGHT, Circuit Judge:

Admiralty Fund alleged in Count 8 of its second amended cross-claims that John Rawlings and Jerome Randolph defrauded the Funds through a series of purchases of HMO International, Inc. stock and resales to Admiralty Fund. The transfers were effected through Rawlings' agency account at City National Bank (hereinafter CNB).

The district court dismissed the action with prejudice under Fed.R.Civ.P. 12(b)(6). The issue is whether...

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