Stark v. Flemming
Ninth Circuit Court of Appeals
283 F.2d 410 (1960)
Relevant factsFree
Stark (plaintiff) placed her farm and house into a newly formed corporation, drawing a $400 monthly salary specifically to qualify for social security old-age benefits, and the Secretary (defendant) deemed the corporation a sham and denied benefits, a decision the district court affirmed.
IssueFree
Whether a corporation formed solely to obtain federal social security benefits, while adhering to state incorporation law and not prohibited by federal law, is valid.