Jackson v. Mishkin (In Re Adler, Coleman Clearing Corp.)

DECISION AND AMENDED ORDER

MARRERO, District Judge.

TABLE OF CONTENTS

Page

INTRODUCTION 416

I. FACTS 417

A. THE PARTIES.417

B. THE ILLEGAL SHORT SELLING.418

C. THE NET CAPITAL COMPLIANCE RULE AND HANOVER’S RESPONSE TO ILLEGAL SHORT SELLING.419

D. HANOVER’S FINAL WEEK.421

E. THE CLOSING OF HANOVER AND ADLER.422

F. PRIOR PROCEEDINGS .423

II. STANDARD OF REVIEW 423

III. DISCUSSION 424

A. THE PARTIAL SUMMARY JUDGMENT MOTION. 1. AppeEants’ Claims and the Bankruptcy Court’s Rulings. 2. Contract Formation. 3. The Blue Chip Buys. a. Cash in the Accounts. b. Trade Date. c. Effects of Hanover’s Fraud. ■^^COOOMM N (M…