Securities and Exchange Commission, and Securities Investor Protection Corporation, Applicant-Appellee v. Alan F. Hughes, Inc. And Alan F. Hughes

TIMBERS, Circuit Judge:

In this case of first impression under the Securities Investor Protection Act of 1970, 1 the essential issue raised on these appeals is the propriety of the district court’s adjudication that the customers of Alan F. Hughes, Inc., a registered broker-dealer, were in need of the protection provided by that Act, the primary purpose of which is to afford protection to public customers in the event broker-dealers with whom they transact business encounter financial difficulties and are unable to satisfy their obligations to their public customers.

There are two appellants,…