Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-12-06

Kaye, is affected by the perma-
nent injunction issued on August
10, 1854, by Federal District
Court for the Southern District
Of New York.
Kaye, an ex-Wall Street stock
broker, also has been barred
from ever engaging in the secu-
rites business in that State by
the Supreme Court of New York.
which at the same time closed
down his firm, Kaye, Real & Co.,
Inc, on November Is. 1858.
SEC Revokes Registration
AS a result, the Securities and
Exchange Commission. last Sep
TENDER 9, revoked the firm S
registration as a broker and
dealer - refusing to let Kaye
withdraw it voluntarily and
noted that, in 1850. the firm was
expelled from the National Asso-
citation of Securities Dealers,
Inc. which also revoked Hayes
registration as registered rep
resentative for violations of as
Sociation rules on fair practice.
An appeal is pending in Phila-
delphia on the SEC revocation.
In addition. Kaye is under
Federal indictment in New York
on charges involving attempts to
sell counterfeit Belgian bonds.
He was arrested on these charges
In 1949 and released under 81. 900
bail. The case is still pending in
the United State District Court
for the Southern District of New
York.
Kaye and the Stanwood COM
pany were introduced as hackers
of the Metropolitan Transit Co
operative last Thursday by Greg
DRY Hankin, former chairman Of
the District Public Utilities Com
mission and counsel for the CO.
operative.
He told the commission. which
is receiving applications to take
over the dying Capital Transit
franchise next August Is. that
Kaye had promised Stanwood
would invest $3.5 million in the
cooperative if it were given a
permit to run the city's transit
system.
Total Of SIS Million
Mr.. Hankin said another oil
company, at the same address as
Stanwood, "a Commerce street,
Newark. would put up IS million
more on the same basis, for a
total of $8.5 million.
This was Wolf Oil & Gas Co..
Inc, in which Kaye is reported to
have the principal interest. He,
however. has told The Star that
the two companies "are separate
entities" and denied having any
connection with Wolf Oil & Gas
except occasionally as a con-
sultant.
He said, though, that they own
contiguous properties in the
Pennsylvania oil fields and con-
duct their field operations there
under joint supervision.
Asked for comment on Hayes
record. Mr.. Hankin said. John
Kaye has been framed and it
will all come out in the wash"
He said he did not know of the
Federal court injunction against
Kaye, and of the tax lien. but
said he knew of the State court
Injunction. the SEC action and
the pending indictment. Its all
a part of the same conspiracy"
Mr.. Tfankin said.
Mr.. Hankin said he has known
Kaye only short time. but "de-
cided I would fight tooth and
nail for John Kaye"
Mr.. Hankin said 1t sis not
anybody's business" how he and
Kaye got in touch with one an
other. OF the indictment against
Kaye, Mr.. Hankin pointed out
the case has been pending six
years and that he has never
been tried. and observed that
under American law an accused
man is presumed innocent until
proven guilty.
There was never any evidence
upon which to try him." Mr..
Hankin said, land the move now
is to drop the indictment"
Mr.. Hankin repeated allega-
See TRANSIT, Page Ala