Securities & Exchange Commission v. Timetrust, Inc.

Plaintiff seeks to enjoin defendants from violating Sec. 17(a) of the Securities Act of 1933, as amended. The complaint is filed pursuant to Sec. 20(b), and jurisdiction is conferred by Sec. 22(a) of the Act.

The theory of the Commission’s complaint is that defendants Timetrust, Incorporated, Meredith Parker, Ralph W. Wood, and H. E. Blanchett have engaged, and unless enjoined, will continue to engage in activities which are in violation of Sec. 17(a), paragraph (2), an anti-fraud provision of the Act, and that defendants Bank of America, A. P. Giannini, L. Mario Giannini, and John M. Grant have aided and abetted and participated in, and unless restrained, will continue to aid and abet and participate in such violations by Timetrust, Parker, Wood, and Blanchett. The complaint does not seek to enjoin any further sale of securities by the defendants; the prayer is that the defendants, in the sale of securities by the use of the mails, be enjoined from engaging in acts and practices which constitute a violation of Sec. 17(a).

The complaint alleges that Timetrust was organized in the state of California for the following purposes, among others: To aid in the widespread sale and…