Securities and Exchange Commission v. J.T. Wallenbrock and Associates Larry Toshio Osaki Van Y. Ichscinotsubo Citadel Capital Management Group, Inc.

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• noting that the third Reves factor “is closely related to the first factor—motivation for the transaction—and thus the considerations discussed vis-à-vis that factor also come into play here”
• observing that the promissory notes were broadly held, including over 1,000 investors in at least 25 states
• stating that the issue of whether notes were “securities” was a legal question
• noting that “[t]he broad availability of the notes, plus Wallenbrock’s evident 7 || interest in widening the scope of distribution, tips this factor strongly in favor of classifying the 8 note as a security”’
• finding second factor weighed in favor of classifying note as security when notes held by over 1,000 investors in at least twenty-five states
• applying abuse of discretion standard where defendant challenged the district court’s injunction and appointment of receiver

Source: CourtListener parenthetical corpus (CC0).