Rubin v. United States

We granted certiorari in this case to decide whether a pledge of stock to a bank as collateral for a loan is an “offer or sale” of a security under § 17 (a) of the Securities Act of 1933, 15 U. S. C. § 77q (a).

I

Late in 1972, petitioner became vice president of Tri-State Energy, Inc., a corporation holding itself out as involved in energy exploration and production. At the time, Tri-State was experiencing serious financial problems. Petitioner approached Bankers Trust Co., a bank with which he had frequently dealt while he had been affiliated with an accounting firm. Bankers Trust initially…