United States v. Palakow

KILEY, Circuit Judge.

The government has appealed from the district court’s judgment1 dismissing its suit for an accounting to the Small Business Administration (SBA) by reason of defendant Palakow’s alleged conversion of SBA’s interest in a dissolved corporation. The court decided the suit was barred and dismissed the suit. We reverse and remand.

On September 30, 1959 SBA made a loan to Zitron Brothers Corporation upon the application of Manuel Levin. Levin guaranteed payment of the loan, pledging his twenty-five shares of stock in the Belvedere Investment Corporation as collateral. The…