In the Matter of Ira Haupt & Co.
Securities and Exchange Commission
23 S.E.C. 589 (1946)
Relevant factsFree
Brokerage firm Ira Haupt & Co. (defendant) helped David A. Schulte, president and 92% owner of Park & Tilford, Inc., sell 93,000 shares of Park & Tilford stock after Schulte had boosted the stock's value by declaring a wartime whiskey-case dividend amid nationwide whiskey shortages. The SEC brought this proceeding over Ira Haupt's role in distributing what it considered an unregistered security, and Ira Haupt argued it qualified for the brokerage exemption as a mere broker distributing the stock.
IssueFree
Whether an underwriter is eligible for the brokerage exemption from stock registration requirements when it is distributing stock on behalf of a controlling stockholder.
Related cases
Securities and Exchange Commission v. Ralston Purina Co.346 U.S. 119 (1953)Securities and Exchange Commission v. Ishopnomarkup.com, Inc.2007 U.S. Dist. LEXIS 70684 (E.D.N.Y. 2007)Securities and Exchange Commission v. Guild Films Co.279 F.2d 485 (1960)Busch v. Carpenter827 F.2d 653 (1987)Securities and Exchange Commission v. Chinese Consolidated Benevolent Association, Inc.120 F.2d 738 (1941)