Case Name: SECURITIES AND EXCHANGE COMMISSION, Plaintiff-Appellee, v. NATIONAL BANKERS LIFE INSURANCE COMPANY et al., Defendants, Tom Max Thomas et al., Defendants-Appellants
Court: United States Court of Appeals for the Fifth Circuit
Jurisdiction: United States
Decision Date: 1973-04-18
Citations: 477 F.2d 920
Docket Number: No. 71-3599
Parties: SECURITIES AND EXCHANGE COMMISSION, Plaintiff-Appellee, v. NATIONAL BANKERS LIFE INSURANCE COMPANY et al., Defendants, Tom Max Thomas et al., Defendants-Appellants.
Judges: 
Reporter: Federal Reporter 2d Series
Volume: 477
Pages: 920–922

Head Matter:
SECURITIES AND EXCHANGE COMMISSION, Plaintiff-Appellee, v. NATIONAL BANKERS LIFE INSURANCE COMPANY et al., Defendants, Tom Max Thomas et al., Defendants-Appellants.
No. 71-3599.
United States Court of Appeals, Fifth Circuit.
April 18, 1973.
Larry Huelbig, Dallas, Tex., for Thomas.
Willard Herbert, Dallas, Tex., for Osorio.
Charles P. Storey, Dallas, Tex., for Carr.
Robert M. Cady, Dallas, Tex., for Hoover.
John Bass, Dallas, Tex., Gene M. Gardner, Duncan, Okl., for So. Atlantic Corp.
G. Bradford Cook, Gen. Counsel, S. E. C., Washington, D. C., Gerald E. Boltz, Robert F. Watson, Ernest Steve Watson, Fort Worth, Tex., Walter P. North, Associate Gen. Counsel, Jacob H. Stillman, Asst. Gen. Counsel, Alan Blank, Sp. Counsel, S.E.C., Washington, D. C., for plaintiff-appellee.
Arthur F. Mathews, A. Douglas Me-lamed, John H. Korns, II, amicus curiae for Jarrell B. Ormand, Washington, D. C.
Before COLEMAN, MORGAN and RONEY, Circuit Judges.

Opinion:
LEWIS R. MORGAN, Circuit Judge:
In this case the Securities and Exchange Commission filed a civil action to permanently enjoin certain corporations and individuals from distributing unregistered securities and engaging in fraudulent manipulative practices in connection with the sale of securities.
Prior to the judgment below, nine of the defendants had agreed to permanent injunctions and the SEC had dismissed five defendants without prejudice to refiling. Of the original 28 defendants in this case, only the following actively contested at trial the issuance of an injunction: J. Quincy Adams, Audy By-ram, Waggoner Carr, James Farha, David Hoover, John Osorio, Phillip Proctor, Tom Max Thomas, and South Atlantic Company [SAC]. Nashwood Corporation was in default and the following did not actively contest the allegations of the complaint: Frank W. Sharp, Sharpstown Realty Co., Oak Forest Realty Co., and Oak Forest Investment Co.
Only four of the defendants, Waggoner Carr, David Hoover, John Osorio and South Atlantic Corporation, have appealed the judgment of the district court.
In an opinion which discusses thoroughly the facts, Judge Sarah T. Hughes held that the facts were ample to illustrate that there were manipulations, misrepresentations and fraud sufficient to constitute violations of the securities laws, and that a permanent injunction should be ordered.
Each of the appellants allege that the facts are insufficient to justify his inclusion in the group covered by the injunction. An exhaustive study of the record of this case shows ample evidence to establish that each appellant was sufficiently connected with this complex affair to support the findings of involvement in past, present or imminent future violations so as to justify an injunction against manipulations in futuro.
The judgment is affirmed.
. The original 28 defendants in this case were: National Bankers Life Insurance Co., National Bankers Life Insurance Co. Employees Retirement Plan, Master Control, Inc., Olympic Life Insurance Company, Nashwood Corporation, Flap, Inc., South Atlantic Company, Sharpstown Realty Company, Oak Forest Realty Company, Oak Forest Investment Company. Sharpstown State Bank, Dallas Bank & Trust Company, Frank W. Sharp, John Osorio, J. Quincy Adams, Waggoner Carr, Joseph P. Novotny, Tom Max Thomas, Sam Stock, Michael F. Ling, Donald S. Akins, Phillip I. Proctor, William B. Strange, Jr., James Far-ha, David Hoover, Audy Byram and H. E. McCain.
. Securities & Exchange Commission v. National Bankers Life Insurance Company, 334 F.Supp. 444 (N.D.Tex.1971).