Pennaluna & Company, Inc., Benjamin A. Harrison, and Harry F. Magnuson v. Securities and Exchange Commission

Pursuant to § 25 of the Securities Exchange Act of 1934, 15 U.S.C. § 78y(a), petitioners seek review of an order of the Securities and Exchange Commission.

Pennaluna & Company was a corporation operating in Wallace and Kellogg, Idaho, and Spokane, Washington, as a registered broker-dealer in securities. It dealt primarily in securities issued by mining companies and for the most part traded on a wholesale basis with other broker-dealers. The company was owned by the two individual petitioners. Harrison owed 62% per cent of the stock and served as president, operated the Spokane office, and was in charge of the company’s trading activities. Magnuson owned 37% per cent of the company, served as treasurer, managed the Wallace and Kellogg offices, and was in charge of the company records. He also operated a separate accounting business in Wallace. The company was incorporated in 1963. Prior to that time, throughout the period here involved, it existed as a partnership, with the interests of Harrison and Magnuson the same as their subsequent stock interests.

The Commission found violations of the Securities Act of 1933 and Securities Exchange Act of 1934 (together with certain…