SECURITIES AND EXCHANGE COMMISSION, Appellant, v. AMERICAN REALTY TRUST, Thomas J. Broyhill, Appellees

HAYNSWORTH, Chief Judge:

The Securities and Exchange Commission sought an injunction against future violations of the securities laws by American Realty Trust and its president, Thomas Broyhill. Though the judge found a failure to disclose a material fact in a prospectus, he did not find a failure to disclose other material facts as charged by the Commission, and he concluded that the one failure of disclosure was not a violation of any statute because of a failure of proof of scienter. We conclude that several violations of the Act were proven, and that in an action for an injunction against…