Catherine C. Stark v. Arthur S. Flemming, Secretary of the Department of Health, Education and Welfare of the United States

We hold Flemming v. Lindgren, 9 Cir., 275 F.2d 596, applicable here and that a similar result should be reached.

Appellant placed her assets — a farm, and a duplex house — in a newly organized corporation. Then she began to draw $400 per month as salary. The Secretary has found the corporation was a. sham. There is no doubt that the corporation was set up to qualify appellant, in a short time for social security payments.

But here there seems to have been' proper adherence to the normal corporate-routines. And it is difficult to understand how the corporate arrangement would not have to be…