Salt Lake Telegram | 1939-08-23 | Page 11 | State Charges Brokers with New Irregularity

State Charges Brokers Brokers- With New Mew Irregularity New charges charge of alleged irregularities in handling municipal refunding bonds sold to the sta state c were placed against the Lauren W. W Gibbs company Salt SaIt Lake City bond ond d dealers alers in a bill of particulars par par- particulars particulars par par- s sent nt the e company Wednesday by the state securities com com- mission The new charges charge's commission officials officials officials of of- said are an outgrowth of ofa a bond deal consummated with Aurora Sevier county county- town for forthe forthe the thc purchase of worth of ol municipal refunding bonds later ater sold to the state industrial com com- mission The bill of particulars listed reasons reasons reasons rea rea- sons for the commissions commission's action in suspending the company's dealers license and ordering it to o show cause why the license should not be permanently revoked The company company company com com- pany was was' cited to show cause August 28 1 The action of o the commission was taken after it t was wa found that the company company had sold Mt Pleasant city refunding bonds to state agencies agencies agen agen- cit cies s without of two issues of the thc old bonds having haying been canceled canceled canceled can can- according to the bill of par par- The new charges allege that the company sold the Aurora bonds to the industrial commission sending assert improper per proceedings to the commission concerning the legality le legality legality le- le of bonds R R. R. R Carey special deputy state auditor filed flied a a report with the securities securities' s' s commission outlining the pt procedure ced re The report i was the b basis basis- sis for the toe charges made in ln the ji jib bill of particulars Although the vr proceedings s submitted sub submitted sub sub- b milted to the industrial commission commission commission commis commis- sion the legality of the bonds showed they were authorized by bythe the town council on dates beginning begin begin- nl ning September 19 10 1931 1934 and o over or r periods extending to January 22 1937 Mr Carey asserted in his report report report re re- re- re port that he was unable to find such authorization in the councils council's minutes The proceedings were prepared in the office offic of the e Gibbs company and sent to Aurora to-Aurora Aurora town for signatures signatures signatures sig sig- sig- sig natures and nd execution in October or November r 1938 Mr Careys Carey's report states He states further that his Investigation Investigation discloses that there was wasa a change in the town board in 1936 sd that the pro proceedings sent to the industrial show that some of the members or rather some of ot the signatories of these proceedings ex executed them some ome t two t vo years' years after they were wre out of l office