JAMES M. PHILLIPS, APPELLANT,
v.
ALABAMA CREDIT CORPORATION D/B/A FIDELITY SECURITIES CORPORATION, APPELLEE
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The court held that reputation testimony is insufficient to refute overwhelming proof of fraud.
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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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.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
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John R. Lewis Inc. v. Hal C. Newman, 446 F.2d 800 (5th Cir. 1971)
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Phillips v. Ala. Credit Corp., 403 F.2d 693 (1st Cir. 1968)
Authorities Cited
- Wilko v. Swan, 346 U.S. 427 (U.S. 1953)
- Sec. & Exch. Comm'n v. Cap. Gains Research Bureau, Inc., 375 U.S. 180 (U.S. 1963)
- Phillips v. Ala. Credit Corp., 403 F.2d 693 (1st Cir. 1968)