Louis J. Glickman was a real estate developer who conducted business through several corporations, the most successful of which was Venada Corporation. When Venada encountered financial difficulties, Glickman started Franchard Corporation, and purchased the majority of its shares. He also elected himself to the board of directors. Subsequently, funds were funneled from the sale of shares of Franchard Corporation to Venada, without the knowledge of Franchard’s shareholders or board of directors, except for one board member who served on the board for both Franchard and Venada. The Securities and Exchange Commission then commenced these proceedings to determine whether Franchard had properly disclosed Glickman’s involvement in both Franchard and Venada.