Crabtree v. Hayden, Stone Inc.

MANSFIELD, District Judge.

This is an action by seven stockholders of Inter American Industries, Ltd. (“Inter American” herein) against the defendant, a . broker-dealer, alleging that plaintiffs were solicited by the defendant through fraudulent representations to purchase Inter American stock, which had not been registered with the S. E. C. as required by the Securities Act of 1933, in violation of §§ 5 and 12 of the Securities Act of 1933 and the anti-fraud provisions of § 17 of the Securities Act and § 10(b) of the Securities Exchange Act of 1934. More specifically, it is alleged that…