Fed. Sec. L. Rep. P 92,280, 13 Collier bankr.cas.2d 1198, Bankr. L. Rep. P 70,718 Herbert D. Underhill v. Carlos Royal, Herbert D. Underhill v. National Mortgage Exchange, Inc.

769 F.2d 1426 Fed. Sec. L. Rep. P 92,280, 13 Collier Bankr.Cas.2d 1198 , Bankr. L. Rep. P 70,718 Herbert D. UNDERHILL, et al., Plaintiffs-Appellees, v. Carlos ROYAL, et al., Defendants-Appellants. Herbert D. UNDERHILL, et al., Plaintiffs-Appellants, v. NATIONAL MORTGAGE EXCHANGE, INC., et al., Defendants-Appellees. Nos. 84-6210, 84-6211. United States Court of Appeals, Ninth Circuit. Argued and Submitted June 4, 1985. Decided Aug. 29, 1985. Matthew V. Herron, Meisenheimer & Herron, San Diego, Cal., for plaintiffs-appellees. Gregory A. Akers, Akers & Williams, James F. Stiven, San Diego, Cal., for defendants-appellants. Appeal from the United States District Court for the Southern District of California. Before WALLACE, TANG, and WIGGINS, Circuit Judges. TANG, Circuit Judge: 1 California Mortgage Exchange, California Mortgage Exchange of Southern California and the principal shareholder of both companies, Carlos Royal, appeal from a judgment entered against them after a jury trial. These defendants were found liable for violations of federal and state securities laws. The plaintiffs cross-appeal the jury's finding that a director of one of the corporations, Max Hollis, was…