Opinion ID: 2176586
Heading Depth: 1
Heading Rank: 7

Heading: the revocation of the licenses of martone and hart

Text: Cross-appellants appeal the Commissioner's sanction against Martone and Hart. The Commissioner made extensive factual findings regarding the improper conduct of Martone and Hart, including their advising investors to purchase highly risky and speculative stocks without disclosing the dangers involved. The taped conversations of Martone also reflect his making categorical statements about future stock prices (e.g., Children's is definitely going to go back up) and suggesting that he personally performed due diligence on companies which he later admitted not having done. These findings were accepted by the Court of Chancery as being supported by substantial evidence. While Hibbard Brown cites testimony and evidence to try to rebut these findings, we agree with the Court of Chancery that there is substantial evidence to support the Commissioner's factual findings. Such findings are therefore conclusive. 6 Del.C. § 7324(b). In light of the findings of egregious conduct by Martone and Hart, the revocation of their licenses cannot be considered an abuse of discretion. The intent and policy of the Delaware Securities Act is to prevent unscrupulous and overreaching brokers from victimizing citizens of Delaware. 6 Del.C. § 7301(b). Revoking the licenses of such brokers is completely consistent with this goal.