In re Industrial Wine Contracts Securities Litigation

I. Background of the Litigation

In June of 1974 the Securities and Exchange Commission filed an enforcement action in the Eastern District of Virginia against Robert Dale Johnson, Ridge Associates & Co., John D. Schrott, Jr., Vortex Corporation, Resource Evaluation and Development, Inc., Canal Corporation, James L. Phillips and five other individuals. The SEC alleges that all defendants violated the securities registration provisions of the federal securities laws in connection with the sale of investment contracts, promissory notes and limited partnerships purportedly concerning the marketing…