Illinois National Bank & Trust Co. v. Gulf States Energy Corp.

Defendants, Gulf States Energy Corporation and Royal Russell, appeal the rescission of certain transactions concerning fractional interests in oil and gas leases. The Winnebago County Circuit Court held these transactions to be sales of securities within the meaning of the Illinois Securities Act (Ill. Rev. Stat. 1973, ch. 12112, par. 137.1 etseq.) and ordered rescission of the sales for defendants’ failure to register the securities with the Secretary of State’s Office, as required by the Act (Ill. Rev. Stat. 1973, ch. 121½, par. 137.5).

Plaintiffs had filed their complaints separately, but…