Lexis Nexis - Case Brief

Not a Lexis Advance subscriber? Try it out for free.

Law School Case Brief

SEC v. Robert Collier & Co - 76 F.2d 939 (2d Cir. 1935)

Rule:

Securities and Exchange Commission was improperly allowed to appear in the district court by its own solicitor because it was required to delegate its powers to the attorney general or district attorney to prosecute fraud cases.

Facts:

The district court allowed plaintiff Securities and Exchange Commission (SEC) to appear by its own solicitor. The SEC was permitted to transmit evidence that was available on acts and practices that may have constituted a fraud to the attorney general who, in his discretion, could file the necessary criminal proceedings. 

Issue:

Can the Securities and Exchange Commission appear in the district court by its own solicitor in prosecuting fraud cases?

Answer:

No.

Conclusion:

The court reversed the district court's decree, which allowed plaintiff Securities and Exchange Commission to appear by its own solicitor,. The appellate court reviewed  section 4 (a) of title 1 of the Securities Exchange Act of 1934, 15 U.S.C.S. § 78d,  and held that the SEC may not appear in the District Court by its own solicitor and file a bill under section 20 (b) of the Securities Act,15 U.S.C.S. § 77t, subd. (b), but rather, must delegate some of its powers to the attorney general or the district attorney for them to prosecute fraud cases.

Access the full text case Not a Lexis Advance subscriber? Try it out for free.
Be Sure You're Prepared for Class