INDEX-DIGEST The following digest of decisions presents a consolidated summary of the case headnotes arranged alphabetically according to topic headings. The digest is divided into three parts*: Part I, containing decisions under the Securities Act of 1933; Part II, the Securities Exchange Act of 1934; Part III, the Public Utility Holding Company Act of 1935, Part IV, the Investment Company Act of 1940. The case headnotes have not been carried over verbatim into this digest. To facilitate the grouping together of decisions standing for a similar proposition under a single digest heading, it has been necessary in some cases to delete from the headnotes all matter not pertinent to the general proposition for which the headnote stood i. e., the names of companies, the principal amounts of security issues, etc. To the same end, certain case headnotes have been entirely redrafted for the digest so as to conform to a uniform statement of the general proposition. In a few instances, case headnotes, which were not considered important for the purposes of this digest, have been omitted from the digest altogether. *During the period covered by this volume there were no opinions containing case headnotes under the Trust Indenture Act of 1939. 20 S. E. C. PART I SECURITIES ACT OF 1933 STOP ORDER PROCEEDINGS MOTION TO AMEND CHARACTER OF NOTICE Motion to amend notice of proceedings under Section 8 (d) sent prior to effective date of registration statement so as to designate the proceeding as one under Section 8 (b) denied where it appears that the deficiencies alleged in the notice were not apparent on the face of the registration statement... Page 863. *The term "Act" as used in Part I of this Digest refers to the Securities Act of 1933. PART II SECURITIES EXCHANGE ACT* OF 1934 BROKER-DEALER REGISTRATION FAILURE TO FILE ANNUAL FINANCIAL STATEMENT AND TO MAINTAIN COMPLETE RECORDS Where broker-dealer's books and records were incomplete in vital particulars, after 2 years and 3 months of business and numerous advisory visits by a Commission representative, and an annual financial statement had not been filed, held, respondent willfully violated Section 17 (a) of the Securities Exchange Act and rules thereunder... Page 429. GROUNDS FOR REVOCATION Violation of Securities Act Inducing Sales of Oil Royalties at Exorbitant Prices by Misrepresentation and Unfounded Estimation of Recoverable Oil. Where registered broker-dealer, while acting as salesman, prior to his registration, in abuse of customers' confidence induced sales of oil royalties at mark-ups ranging to 118.18 percent by false representations that the Government and the Securities and Exchange Commission had investigated and approved the oil royalties, that they were registered and that the Commission had fixed the prices thereof, and by unfounded estimations of recoverable oil and monetary returns, held, respondent willfully violated Sections 17 (a) and 23 of the Securities Act... Page 429. SALES OF OIL ROYALTIES WITHOUT REGISTRATION Where an oil royalty was sold at a time when offering sheets were not yet in effect, held, willful violation of Section 5 (a) of the Securities Act . . . Page 429. NATIONAL AND AFFILIATED SECURITIES ASSOCIATION CONTINUANCE IN MEMBERSHIP Where national securities association applied pursuant to Section 15A (b) (4) for approval of continuance in membership of broker-dealer employing individual previously expelled from association, held that continuance in membership is appropriate in the public interest... Page 186. *The term "Act" as used in Part II of this Digest refers to the Securities Exchange Act of 1934. |