BANK OF LEXINGTON v. VINING-SPARKS SECURITIES

No. 91-5179.

959 F.2d 606 (1992)

BANK OF LEXINGTON & TRUST COMPANY, a Kentucky banking corporation, Plaintiff-Appellant, v. VINING-SPARKS SECURITIES, INC., a Delaware corporation, and James L. Vining, individually, Defendants-Appellees.

United States Court of Appeals, Sixth Circuit.

Decided March 23, 1992.


Attorney(s) appearing for the Case

David Tachau (argued and briefed), Maureen Taylor, Brown, Todd & Heyburn, Louisville, Ky. and Paul E. Sullivan, Brown, Todd & Heyburn, Lexington, Ky., for plaintiff-appellant.

Karen J. Greenwell, William H. McCann, Wyatt, Tarrant & Combs, Lexington, Ky., Earle J. Schwarz (argued and briefed), Frank L. Watson, Saul C. Belz, and Waring Cox, Memphis, Tenn., for defendants-appellees.

Before: GUY and BOGGS, Circuit Judges; and HARVEY, Senior District Judge.


JAMES HARVEY, Senior District Judge.

This case arises out of the Bank of Lexington & Trust Company's (the Bank's) purchase of municipal bonds from Vining-Sparks Securities, Inc. (Vining-Sparks), a brokerage firm. When the Bank began to suffer losses on the bonds, it brought suit against Vining-Sparks and James Vining, the president and CEO of Vining-Sparks, alleging violations of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b), the Racketeer Influenced...

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