Richard Beauvais v. Allegiance Securities, Inc., Irwin Frankel and Frank Grillo, Richard Beauvais v. Securities Settlement Corporation

CARDAMONE, Circuit Judge:

Plaintiff Richard Beauvais, a victim of securities fraud, sought to satisfy the remainder of an unpaid judgment rendered in his favor against his stockbroker Allegiance Securities, Inc. (Allegiance), and two of its representatives, Irwin Frankel and Frank Grillo, out of monies allegedly held on behalf of Allegiance by a third party— Securities Settlement Corporation (SSC, Securities Settlement, or appellant). Applying New York law, the district court asked whether the defendants had an interest in the money held by SSC and, after concluding they did, ordered SSC to…