Idalia O. Fratt v. John R. Robinson and

STEPHENS, C.J.: It is alleged in the complaint which was filed in the United States District Court, that the defendants-appellees acquired corporate stock from the plaintiff-appellant through fraudulent representations by the use of the United States mails, the telephone, and other means and instrumentalities of interstate commerce; thus violating Securities Exchange Commissions Rule X-10B-5 which implements ? 10 of the Securities Exchange Act of 1934 (15 U.S.C.A.? 78j) 48 Stat. 881, 891. Of specific application here is ? 10 (b) (subdivision (b) of ? 78j, 15 U.S.C.A.). Hereinafter we shall refer to the implemented section of the Act as ? 10. The stock was not handled on or through any securities exchange, or any stock-dealing organization, nor by any person connected with any business sometimes referred to as "over-the-counter markets" or businesses. The stock was not listed with or upon or put for sale with any stock or security-exchange or sales business.