Bellerue v. Business Files Institute, Inc.

Plaintiff appeals from a judgment for defendants in an action to recover money on the ground that the transaction was a violation of the Corporate Securities Law and on the additional ground that it had been induced by misrepresentations.

Fads: Defendants Hedden and Hilliard organized defendant Creative Management Corporation (hereinafter referred to as “C.M.C.”), each taking 49 per cent of the stock and each actively participating in its operation. Shortly thereafter, defendant Business Files Institute, Inc. (hereinafter referred to as “B.F.I.”) was formed, with all 100 shares of B.F.I. ’s…