Securities and Exchange Commission v. Tax Service, Inc., and John C. Bennett, Trustee for Tax Service, Inc.

The District Court permanently enjoined defendants, Tax Service, Inc., and John C. Bennett, from making use of any means or instruments of interstate commerce or of the mails to sell or offer for sale unregistered shares of common or preferred stocks of Tax Service, Inc. 1 The Commission in its complaint asserted, and the District Court found, that such securities were being sold in violation of sections 5(a) and 5(c) of the Securities Act of 1933, 15 U.S.C.A. §§ 77e (a) and 77e(c), and that the offers to sell the securities did not constitute a “private offering” exempted by section 4(1), 15…