Stark v. Flemming
Ninth Circuit Court of Appeals
283 F.2d 410 (1960)
Stark (plaintiff) placed her farm and house into a newly formed corporation and began to draw $400 per month as a salary. The corporation was set up to provide Stark with a salary to qualify her for social security benefits. The Secretary of Health, Education and Welfare (the Secretary) (defendant) found that the corporation was a sham and denied old-age benefits to Stark. The district court affirmed.
Rule of Law
Holding and Reasoning (Per Curiam)