Securities & Exchange Commission v. Barrett Herrick & Co.

SUGARMAN, District Judge.

Claimants Edward Jaeger (Jaeger), Mervyn J. LaRue, Helen LaRue (the LaRues), Fannie Schreibman, Robert David Schreibman, Peter Frank Schreibman and Zoltán Klein (the Schreibmans and Klein) object to the receiver’s disallowance of their respective claims to the extent that they claim “priorities”. There is no question as to the amount of each claim.

Jaeger, the Schreibmans and Klein show that they had delivered securities to their broker, the corporate defendant, which securities were sold. The proceeds of the sales were on September 10, 1956 deposited in the broker’s…