202 N.W. 141 | S.D. | 1925
Defendant, with others, signed a subscription contract whereby they each agreed to purchase and pay for a specified amount of the capital stock .of a certain corporation to be thereafter organized. Such corporation was organized thereafter, and defendant was called on to pay for and receive the stock for which he had subscribed. This he refused to do.
One of the grounds on which defendant refused to pay for
Under the provisions of section 10128 the association, whatever its form, that secured the subscription of defendant was an investment company. Under the provisions of section 10130 it was the duty of said investment company before taking' any subr scriptions to file with the Securities Commission a detailed statement of the plan upon which it proposes to do business. Sections X0140 and 10149 make it not only unlawful, but a penal offense to violate any of the above provisions of the law.
This brings the case within the rule followed by this court in Citizens’ Bank v. Rowe, 36 S. D. 151, 153 N. W. 939, and for the reasons therein stated the subscription by defendant that is
The judgment appealed from is affirmed.