Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-04-07
5. f. {. Charges
Ex-Aide Revealed
Secrets 10 Giannini
Commission Seeks to Bor
Further Employment Of
Mohoney by Banker
BACKGROUND

BACKGROUND
One OF most bitter legal con-
ficts in Which S. E. c. has en-
gagged is that inuoluing the east
California banking interSt of A.
P. Giannini. For months, COM
mission has sought to complete
its study OF practices of Bank OF
America, Transamerica Corp. and
Timetrust, Inc, interlocking
guilty of dealings prejudicial to
public interest," Court actions in
case hare been under ,Day both
here and on West Coast.
BY the Associated Press.
A former s4,000-a- year Securities
and Exchange Commission lawyer,
now employed by Bank of America
at $500 a year, stood accused by
the S. E. c. today of giving Trans
america Corp. confidential informa-
ton" acquired while working for
the commission.
The S. E. G. announced last night
that it and the Justice Department
had made the allegation in a civil
complaint filed in the United States
District Court for the Northern dis
trict of California, southern divi-
sion.
The complaint said William j.
Mahaney, recently employed by the
S. E. c., has been and still is dis
closing" to officers of Bank of Amer
lea National Trust g. Savings As
ISOLATION and Transamerica Corp.
confidential information with re-
spect to pending Investigations and
proceedings. which he acquired while
acting as attorney for the commits
SION"
The S. E. c. has charged that
Transamerica Corp. filed false and
misleading" financial statements,
and has been conducting a public
investigation of the charges. Trans
america owns AZ per cent Of the
stock of Bank of America.
Seeks to End Employment.
The commission sought to enjoin
Mahaney and the bank from con-
tinuing the employment of the
former S. E. c. attorney.
The complaint was the second
legal action within two days directed
by the commission at the Giannini-
dominated California banking en-
pire.
Thursday the S. E. c. charged a
P. Giannini and other officials of
Bank of America with using "a de-
vice, scheme and artifice to defraud'
purchasers of securities. The CON-
plant, filed in the same California
court, related to certificates Of
Timetrust, Inc, sold to the public.
Mr.. Giannini, chairman of Trans
america, in a statement said
neither Bank of America, L. M.
Giannini, John M. Grant or myself
has been or is now connected In any
way whatsoever with Timetrust,
Inc"
The S. E. c. said that from March
Is, 1885. to January 3, 1889, Mr..
Mahaney was a commission attor-
ney.
From June /, 1896, to January 3,
1889, the agency added, he "pur-
ported to discharge his duties as at
torney for the commission" at the
San Francisco S. E. c. regional Of
flee. and on January 3. 1899, he re-
signed from the S. E. c., effective
February 2, 1899.
Had n r. ASSiwnmnn%
From June l, 1896. up to and in
Guiding January S, 1889, Defendant
Mahaney had full complete access
to all books, records, papers, CORE
spondence and memoranda in the
San Francisco regional Office of the
commission including those
relating to the investigations and
proceedings y ," the COM
plant said.
In the autumn of 1898, it was
stated, Mr.. Mahaney told his SUI
perior in San Francisco of a desire
to be assigned temporarily to the
commissions Washington headquar-
tiers for the purpose of refreshing
his knowledge concerning the work.
ings and policies of that office"