Securities Exchange Act of 1934 release

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Material Information

Title:
Securities Exchange Act of 1934 release
Physical Description:
v. : ; 28 cm.
Language:
English
Creator:
United States -- Securities and Exchange Commission
Publisher:
Securities and Exchange Commission
Place of Publication:
Washington
Publication Date:
Frequency:
irregular
completely irregular

Subjects

Subjects / Keywords:
Stock exchanges -- United States   ( lcsh )
Securities -- United States   ( lcsh )
Securities   ( fast )
Stock exchanges   ( fast )
United States   ( fast )
Genre:
serial   ( sobekcm )
federal government publication   ( marcgt )

Notes

Dates or Sequential Designation:
No. 53 (Nov. 30, 1934)-
Dates or Sequential Designation:
Ceased with: no. 9971 (Jan. 26, 1973).
General Note:
Title from caption.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
oclc - 08362589
lccn - sn 88017025
ocm08362589
Classification:
lcc - KF1444 .S425
System ID:
AA00020295:00001

Related Items

Preceded by:
Release
Succeeded by:
SEC docket

Full Text



For IMMEDIATE Release Wednesday, March 26, 1941

SECURITIES AND EXCHANGE COMMISSION
Washington

SECURITIES EXCHANGE ACT OP 1934
Release No. 2831

UNITED STATES OF AMERICA
BEFORE THE SECURITIES AND EXCHANGE COMMISSION

At a regular session of the Securities and Exchange Commission,
held at its office in the City of Washington, D. C.,
on the 26th day of March, A. D., 1941.


In the Matter of

EQUITABLE SECURITIES COMPANY OF ILLINOIS
105 South LaSalle Street
Chicago, Illinois

Securities Exchange Act of 1954 -
Section 15 (b)


FINDINGS AND OQRDER--,
REVOKING REGISTRATION


BROKER-DEALER REGISTRATION :.

VIOLATION OF SECURITIES ACT AND SECURITIES EXCHANGE ACT

Where it appears that the registrant engaged in the sale of securi-
ties through the mails and in interstate commerce by means of false
and misleading statements of material facts and wilfully violated
Section 17 (a) of the Securities Act of 1993 and Section 15 (c) (i)
of the Securities Exchange Act of 1934, and where registrant con-
sented to an order of revocation, held that it is in the public in-
terest to revoke registration.



APPEARANCES:

A. L. Hoffman of the Chicago Regional Office of the Commission, for the
Trading and Exchange Division.



This proceeding was commenced under Section 15 (b) of the Securities
Exchange Act of 1934 to determine whether the registration as a broker and
dealer of Equitable Securities Company of Illinois should be suspended or
revoked. Pursuant to an order of the Commission dated February 4, 1941, and
notice served upon the registrant, the hearing in this matter was held before
a trial examiner in Chicago, Illinois, on February 25, 1941.
The order for hearing recited that the staff had reported to the Commis-
sion information obtained as a result of an investigation of the registrant
which tended to show that:

(a) During the period from February 1958 to the date of the order,
registrant, through its president, Philip Mango, aad its sales-
men, had solicited business from various people residing in
Illinois and Indiana, including many elderly persons unfamiliar
with securities and securities markets;





2 34 2831

(b) The registrant, knowing that many of the persons solicited were -
unfamiliar with securities and securities markets, by various m-
schemes and devices secured the trust and confidence of such per- --
sons for the purpose of inducing them to buy or sell securities; o 0

(c) The registrant induced such persons to believe that its advice ___
with respect to transactions involving the purchase or sale of o___
securities by such customers was impartial and that transactions -
which it recommended would be to the advantage of such cus-
tomers;

(d) During the period in question, the registrant induced various
persons whose trust and confidence had thus been obtained to
purchase and sell securities by means of material misrepresen-
tations with respect to the nature of the relationship between
the registrant and these persons, the prevailing market values
of the securities which the registrant and its agents induced
customers to buy or sell, the amount of the proceeds obtained
by the registrant from the sale of certain securities of cus-
tomers, and the amount of such proceeds invested in other se-
curities for customers. During this period, registrant induced
these persons to purchase securities at prices far in excess
both of the existing market price and of the price registrant
paid for the securities, and also induced persons to sell se,
curities at prices far below both the existing market price and
the price registrant obtained for the securities;

(e) The registrant used the mails and instruments of interstate
commerce in effecting transactions in, and in inducing the pur-
chase and sale of, such securities.

The hearing was ordered to determine whether the facts reported by the
staff are true; whether registrant wilfully violated Section 1'7 (a) of the
Securities Act of 1933 and Section 15 (c) (1) of the Securities Exchange Act
of 1934; and, if so, whether it is in the public interest to revoke or sus-
pend the registrant's registration as a broker and dealer.

No representative of the registrant appeared at the hearing, but the
record contains a document entitled "Answer and Consent to Revocation of
Registration," signed by the registrant's president and duly authorized by
its board of directors, which acknowledges receipt and service of adequate
notice of the proceeding, admits and acknowledges the existence of the facts
and the cause of action set out in the order, and consents to the entry of
an order revoking its registration as an over-the-counter broker and dealer.
The trial examiner found that the facts are as stated in the order for
hearing; that the registrant has violated Section 17 (a) of the Securities
Act of 1933 and Section 15 (c) (1) of the Securities Exchange Act of 1934;
and that It is in the public interest to revoke registration. Upon an in-
dependent review of the record, we adopt these findings of the trial ex-
aminer.

IT IS THEREFORE ORDERED, pursuant to Section 15 (b) of the Securities
Exchange Act of 1934, that the registration of Equitable Securities Company
of Illinois as a broker and dealer be, and it hereby is, revoked.

By the Commission (Chairman Frank, Commissioners Healy, Eicher, and
Pike), Commissioner Herderson being absent and not participating.


Francis P. Brassor,
Secretary.
(SEAL)