consiglieri wrote: ↑Tue Nov 02, 2021 1:59 am
The part that kills me is when he realizes he has gone too far and starts stuttering while he pulls as hard as he can on the yoke.
Unlike Elder Holland, The Security and Exchange Commission appears not to have been too impressed with Ballard's integrity and righteousness during the early 60's. I don't know if this is old news or not but I will pass it along anyway.
VIOLATIONS CHARGED TO KEYSTONE SECURITIES. The SEC has ordered proceedings under the Securities Exchange Act of 1934 to determine whether Keystone Securities Corp., of 826 South Main Street, Salt Lake City, violate prohibitions of that Act and the Securities Act of 1933 against manipulation and fraud and, if so, whether its broker-dealer registration should be revoked.Keystone has been registered with the Commission as a broker-dealer since July 12, 1961, and M. R. (Russell) Ballard, Jr., is its president. In its order, the Commission recites charges of its staff that information developed in an investigation tends to show that certain activities of Keystone and Ballard with respect to Shasta Minerals and Chemical Company violated the said provisions of the Federal securities laws. Shasta filed a registration statement with the Commission in April 1961 proposing the public offering of 500,000 shares of Shasta common at $2.50 per share. That statement, as amended, names Keystone as underwriter. The staff charges that the Shasta registration statement (against which "stop order" proceedings are pending under the Securities Act) contains false and misleading information and omits material facts with respect to the following and that Keystone and Ballard aided and abetted Shasta in its filing: a) prior sales of Shasta stock in violation of Section 17 of the Securities Act and the true facts surrounding a January and February 1961 rescission offer by Shasta; (b) financial statements and the financial condition of Shasta; (c) the relationship of Shasta, its promoters and management officials, with Keystone and Ballard; (d) the activities of Shasta, Kay L. Stoker and others in the offer and sale of Shasta stock in violation of Sections 5 and 17(a) of the Securities Act;[/b] and (e) the fact that Phelps-Dodge Corporation withdrew from its joint-venture with Shasta because the results were unfavorable from the standpoint of Phelps-Dodge. The Staff further charges that, in the offer and sale of Shasta common during the period January to November 1961, Keystone and Ballard engaged in activities which operated as a "fraud and deceit" upon certain persons in that (1) in addition to the foregoing, and for the purpose of conditioning and inducing investors to purchase Shasta stock to be offered under the said registration statement, they offered and sold Shasta shares at prices ranging from $1.50 to $1.60 per share to certain members of the Shasta-Stoker group, which prices were in excess of those previously charged public investors; and (2) distributed a letter to Shasta shareholders for the purpose of inducing their purchase of Shasta shares to be offered under the registration statement, and included therein certain false and misleading information, including that with respect to the stage of development, nature of and potential value of Shasta's mining properties. The filing of a false financial statement by Keystone and its violation of the Commission's record-keeping requirements also are charged by the staff. A hearing will be held, at a time and place to be announced, for the purpose of taking evidence to determine whether the staff charg.....
https://www.sec.gov/news/digest/1962/dig072462.pdf
REGISTRATION OF KEYSTONE SECURITIES REVOKED. In a decision announced today (Release 34-7095) the SEC evoked the broker-dealer registration of Keystone Securities Corp., 816 South Main St., Salt Lake City, tab. M. Russell Ballard, Jr., president and a principal stockholder of the firm, was found a cause of the evocation order. In its decision, the Commission found that Keystone and Ballard violated Sections 7 and o of the Securities Act of 1933 in that they aided and abetted Shasta Minerals and Chemical Company in making false and misleading statements in a registration statement filed by Shasta regarding prior sales of Shasta stock in violation of the Securities Act anti-fraud provisions, financial statements and financial condition and prior activities of Shasta, and the relationships of Shasta and its officers, directors and promoters with Keystone and Ballard. The Commission also found that Keystone filed with the Commission a false financial statement and violated the Exchange Act bookkeeping requirements. (Commissioner Cohen did not participate in the Commission's decision).
https://www.sec.gov/news/digest/1963/dig071063.pdf
He is also mentioned here for those who speak legalese:
https://casetext.com/case/silver-king-mines-inc-v-cohen
Sorry, for the sloppy copy.
Russell Nelson went to visit Ballard in 1977 when he was the Mission President in Toronto. So, it must have taken Ballard a mere 15 years to turn from a white-collar crook into a second-anointed one. He must have had some kind of Damascene conversion.
Note: This information was passed along to me. I can't take credit for the research.
