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HOCHFELDER v. ERNST & ERNST

Nos. 73-1907, 73-1908.

503 F.2d 1100 (1974)

Olga HOCHFELDER et al., Plaintiffs-Appellants, v. ERNST & ERNST, Defendant-Appellee. Leon S. MARTIN et al., Defendants-Appellants, v. ERNST & ERNST, Defendant-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided August 30, 1974.

Rehearing Denied November 22, 1974.

Attorney(s) appearing for the Case

Alex Elson, Donald L. Vetter, Willard L. King, Chicago, Ill., for plaintiffs-appellants.

Francis D. Morrissey, Chicago, Ill., for defendant-appellee.

Before SWYGERT, Chief Judge, CASTLE, Senior Circuit Judge, and SPRECHER, Circuit Judge.

SWYGERT, Chief Judge.

Plaintiffs appeal from a grant of summary judgment in favor of the defendant Ernst & Ernst, a firm of independent certified public accountants. The plaintiffs were investors1 in a fraudulent securities scheme perpetuated by Leston B. Nay, President of First Securities Company of Chicago and owner of ninety-two percent of its stock. First Securities was a small brokerage firm in Chicago which was registered with...

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