UNITED STATES of America, Appellee, v. Robert SCHWARTZ, Appellant

CLARIE, District Judge:

The appellant was convicted after a trial by the court of having conspired to violate § 8(c) of the Securities Exchange Act of 1934 (the “Act”), 15 U.S.C. § 7811(c), 1 and Rule 17 C.F.R. § 240.8e-l, which prohibit the unlawful hypothecation of securities by brokers or dealers, who transact a business through a national exchange. The trial court found that appellant had unlawfully caused Armstrong & Co., Inc., a broker-dealer, to hypothecate securities “carried for the account of” its customers, so that said securities were subjected to a lien in excess of the aggregate…