Los Angeles Trust Deed & Mortgage Exchange v. Securities & Exchange Commission

The Securities and Exchange Commission (referred to herein as SEC) instituted suit against three corporate defendants 1 and five individual officers thereof in the United States District Court for the Southern District of California. Originally the defendants were charged with issuing and selling securities in a fraudulent and deceitful manner, using the mails, to effect sales of securi *165 ties by fraud, and violating certain provisions of the Securities Act of 1933 (15 U.S.C.A. § 77q) and the Securities Exchange Act of 1934 (15 U.S.C.A. § 78o), with respect to the registration of securities. By amended complaint, the defendants were charged with insolvency. While originally seeking merely injunctive compliance with the Securities Acts, the SEC subsequently additionally requested the appointment of a receiver, and liquidation of the defendant corporations.

This matter has been before us previously. Under date of November 17,1958, this court, after a partial trial below, the granting of a preliminary injunction, and the appointment of a receiver, stayed the operation of such orders pending appeal, issued a substitute restraining order, and expedited the appeal. That appeal was…