Wallach v. Securities and Exchange Commission

BAZELON, Circuit Judge.

Section 15(b) of the Securities and Exchange Act deals with Commission denial or revocation of the registration required of broker-dealers under the Act. 1 Substantially, denial or revocation is authorized only after it has been determined that the registrant or applicant, or anyone subject to his control, has willfully violated the Act at any time. A hearing prior to denial or revocation is specified by § 15(b) with regard to applicants or registrants, but no provision is made therein for compelling “controlled” persons who are not broker-dealers to become parties to…