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United States v. Dixon

United States Court of Appeals for the Second Circuit
536 F.2d 1388 (1976)


Facts

In 1971, Lloyd Dixon (defendant) was the president of AVM Corporation (AVM). Charges were brought against Dixon by the United States (plaintiff), alleging that he loaned himself over $65,000 from corporate funds without disclosing this fact to shareholders, in violation of proxy disclosure rules and § 32(a) of the Exchange Act. Dixon attempted to argue that he was not aware of the disclosure requirement. At trial, it was discovered that AVM’s accountants would provide Dixon with financial forms, on which he was to detail transactions between officers and employees of AVM and AVM itself. Dixon did not include his loans on this form. The district court ruled in favor of the United States. Dixon then appealed to the Second Circuit Court of Appeals.

Rule of Law

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Issue

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Holding and Reasoning (Friendly, J.)

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  • A "yes" or "no" answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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