JAMES M. PHILLIPS, APPELLANT,
v.
ALABAMA CREDIT CORPORATION D/B/A FIDELITY SECURITIES CORPORATION, APPELLEE

5th Cir. | 1968-11-25
No. 25331
403 F.2d 692 Court of Appeals for the Fifth Circuit (1968) Positive Treatment
Cited by 4 cases

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Holding

The court held that reputation testimony is insufficient to refute overwhelming proof of fraud.


Facts & Procedural History

Phillips appealed a directed verdict in favor of Alabama Credit Corp. on securities fraud claims. Phillips offered no evidence to contradict the proof…

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Opinion of the Court
PER CURIAM:

PER CURIAM:

Phillips appeals from a directed verdict in favor of Alabama Credit Corp. on three counts of securities fraud in violation of §§ 12(2), 17 of the Securities Act of 1933, 15 U.S.C.A. §§ 77l(2), 77q, and the Alabama misrepresentation statute, 7 Ala.Code § 108 (1958).1

Phillips offered no evidence to contradict the overwhelming proof that he committed the fraudulent acts. The only evidence offered by Phillips was reputation testimony from friends and associates. It is clear that fraudulent intent need not be proved and that testimony of the defendant’s reputation in the community is not enough to refute overwhelming proof of fraud. Wilko v. Swan, 1953, 346 U.S. 427, 431, 74 S.Ct. 182, 98 L.Ed. 168, 173; S.E.C. v. Capital Gaines Research Bureau, 1963, 375 U.S. 180, 192, 195, 84 S.Ct. 275, 283-284, 11 L.Ed.2d 237, 246, 248; Mutual Sav. Life Ins. Co. v. Osborne, 1945, 32 Ala.App. 220, 23 So. 2d 864, cert. denied, 247 Ala. 252, 23 So. 2d 867.

Affirmed.

. This is a companion case to Phillips v. Alabama Credit Corp., 403 F. 2d 693, decided this day, which involved violations of these same statutes.


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