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SECURITIES EXCHANGE ACT* OF 1934
FAILURE TO REGISTER
Where one partner withdrew from registered broker-dealer firm and remaining partner notified the Commission with respect to such withdrawal and his association with a new partner, but failed to register new partnership by filing the appropriate form for such registration, held, Commission would not, under the circumstances, take any disciplinary action by reason of such violation of Section 15 (a) of the Securities Exchange Act ... Page 634.
FALURE TO FILE FINANCIAL STATEMENTS
Where registered broker-dealer firm did not file annual financial report because its accountants were unable to complete the report on account of the press of year-end business, held, Commission would not, under the circumstances, take any disciplinary action against the registrant merely on the basis of such violation of Section 17(a) of the Securities Exchange Act and Rule X-17A-5 thereunder ... Page 634.
Over-the-counter transactions in non-exempt securities by unregistered dealer primarily engaged in business of trading in exempted securities, held to constitute violation of Section 15(a) of the Securities Exchange Act of 1934 ... Page 126.
FRAUD IN SALE AND PURCHASE OF SECURITIES
Where partner in registered broker and dealer firın by means of misleading omissions respecting his financial condition induced a customer, with whom he was in confidential relationship, to purchase his personal note and where by means of misrepresentation of fact and misleading omissions the partner induced the same customer to become a partner in a successor broker and dealer firm and contribute all her securities to the firm, held, partner willfully violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule X-10B-5 thereunder ... Page 634.
GROUNDS FOR DENIAL--PUBLIC INTEREST
Where, notwithstanding prior willful violations of Securities Exchange Act of 1934 by partner in firm applying for registration as a broker and dealer, Commission is satisfied that under all the circumstances, including applicant undertaking to deal with customers primarily as agent, the likelihood that violations will occur in the future is substantially lessened, held, that the public interest does not require denial of application for registration ... Page 126.
Where prior willful violations of Securities Act of 1933 and Securities Exchange Act of 1934 by person applying for registration as a broker and dealer appear to have been departures from normal conduct of applicant and where other factors in case afford substantial assurance that misconduct is not likely to be repeated, held, it is not in the public interest to deny registration ... Page 858.
GROUNDS FOR REVOCATION
Where registered broker-dealer's transactions on national securities exchange, including purchases from others and wash sales and matched orders in great volume, raised and maintained the prices of securities and where registrant sold said securities at levels artificially attained and where registrant's defense that its sole purpose in effecting wash transactions was to delay payment is rebutted by the evidence which shows a manipulative purpose, held, registrant willfully violated Section 9 (a) (1) and (2) of the Securities Exchange Act of 1934 ... Page 208.
*The term “Act" as used in Part 1 of this Digest refers to the Securities Exchange Act of 1934.
28 S. E. C.
Where registered broker-dealer failed to file annual reports of financial condition held,
Where registrant willfully violated the anti-fraud provisions of the Securities Act of 1933
Where a registered dealer has been en joined by a State court from engaging in the securi-
Where registered broker-dealer accepted monies and securities from customers while
Where despite repeated requests of Commission representatives registered broker
Where registered broker during hearing in revocation proceedings establishing willful
Where registered broker-dealer (1) obtained monies and securities from customers in
Reports under Rule X-17A-5 which failed to show liability for return of securities bor-
Where, without disclosure, registered broker-dealer's sales over the counter were made
VIOLATION OF NET CAPITAL RULE
Where registered broker-dealer permitted its liabilities to exceed its assets, held, willful violation of Section 15 (cX3) of Securities Exchange Act of 1934 and Rule X-15C3-1 thereunder ... Page 634.
WITHDRAWAL FROM REGISTRATION
Where parmer controlling broker-dealer firm had willfully violated the anti-fraud provisions of Securities Act and Securities Exchange Act in transactions of purchase and sale with one customer and where firm applied to withdraw its registration, held, application to withdraw from registration would be permitted to become effective, if firm furnished satisfactory proof that it had made restitution to the customer who had been defrauded and had paid all of its obligations in full but that, if such proof not furnished, public interest requires revocation of registration ... Page 634.
NATIONAL SECURITIES ASSOCIATION
APPROVAL FOR MEMBERSHIP--PUBLIC INTEREST
Where national securities association has applied for approval of admission to membership of broker-dealer firm having partner who had been expelled from national securities exchange for violating rules of such exchange prohibiting conduct inconsistent with just and equitable principles of trade, held, under all the circumstances, including the fact that the firm has been barred from membership for nine years, and giving due weight to the recommendation of the national securities association that such firm should be admitted to membership. that it is in the public interest to approve its admission to such membership ... Page 319.
CONTINUANCE IN MEMBERSHIP
Application of national securities association pursuant to Section 15A(b)(4) of the Securities Exchange Act of 1934 for approval of continuance in membership of broker-dealer while employing individual previously found to be "a cause" of an order of revocation and expulsion approved, upon a showing that such employment was appropriate in the public interest ... Pages 198, 200, 202, 204, 206.
PUBLIC INTEREST--EXPULSION FROM NATIONAL SECURITIES ASSOCIATION
Where registered broker-dealer engaged in a series of transactions on national securities exchange artificially raising and maintaining the prices of securities traded thereon and where without disclosure it sold securities over the counter on the basis of the manipulated exchange prices, held, in the public interest to revoke the firm's registration and to expel it from membership in national securities association ...!
PUBLIC UTILITY HOLDING COMPANY ACT* OF 1935
Proposed accounting entries relating to investment in subsidiary on books of parent and entries relating to certain charges and credits to surplus prior to January 1, 1940, permitted, subject to reservation of jurisdiction to require other and different treatment from that proposed, and accounting entries relating to transfer of portion of depreciation reserve to surplus on books of parent permitted, subject to condition that amounts proposed to be credited to surplus shall be not available for any purpose except pursuant to further order of this Commission ... Page 150.
Declaration by registered holding company to change the method of recording its investments in subsidiaries from "fair value" to "underlying book value” permitted to become effective, there being no basis for adverse findings ... Page 569.
ACQUISITION OF SECURITIES BY REGISTERED HOLDING
COMPANY Application of parent holding company to acquire securities of one subsidiary and certa in securities held by another of its subsidiaries, granted, the Commission finding that such acquisitions, as a temporary step. conform to applicable standards of Section 10, subject to condition that such securities shall be held subject to an outstanding divestment order... Page 150.
Application by registered holding company for approval of its acquisition of additional common stock of subsidiary granted, the Commission finding that the applicable standards of Section 10 of the Act are satisfied ... Page 290.
Application by a public utility company pursuant to Sections 9 and 10 of the Act regarding the acquisition of the securities of three public utility companies and applications by three persons, pursuant to said sections of the Act, to acquire common stock of the acquiring company, granted, subject to certain conditions, the Commission finding that the standards of Section 10 have been met ... Page 861.
Application pursuant to Section 10 of the Act by a registered holding company regarding the acquisition of additional shares of common stock of two of its subsidiary companies, granted, subject to condition that securities thus acquired are held by applicant and its parent subject to provisions of outstanding Sections 11 (b) and (e) orders ... Page 312.
Application by a registered holding company pursuant to Sections 9 and 10 of the Act regarding the acquisition of the securities of a public utility company, granted, subject to certain conditions, the Commission finding that the standards of Section 10 have been met ... Page 451.
Acquisition by registered holding company of additional shares of common stock of its subsidiary pursuant to exercise of its preemptive rights approved, the Commission making no adverse findings under Sections 10 (b) and 10 (C) (1) and finding that the transaction has the tendency required by Section 10 (c) (2) of the Act in view of the proposed distribution by the registered holding company of its shares of stock in said subsidiary to its own stockholders in the immediate future . . . Page 621.
Declaration filed pursuant to Section 12 (c) of the Act by registered holding company respecting acquisition of presently outstanding notes in exchange for new notes, permitted to become effective, the Commission making no adverse findings ... Page 114.
The term “Act" as used in Part II of this Digest refers to the Public Utility Holding Company Act of 1935.
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