# Petition — Tallant v. Henson

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition
- **Published:** January 1, 1975
- **Citation:** 423 U.S. 890

## Text

IN THE ocT 4 1975

Supreme Court of the Anitdd States

OCTOBER TERM, 1975

No 6597522?

~~

FRED C. TALLANT, SR..,
WILLIAM M. WOMACK, JR.,

Petitioners,

v

JAMES H. HENSON,
UNITED STATES MARSHAL
NORTHERN DISTRICT OF GEORGIA,

AND

ALLEN L. CHANCEY, JR.
UNITED STATES MAGISTRATE
NORTHERN DISTRICT OF GEORGIA,

Respondents

MOTION FOR LEAVE TO FILE PETITION FOR ORIGINAL
WRIT OF HABEAS CORPUS, PETITION FOR ORIGINAL WRIT
OF HABEAS CORPUS, AND BRIEF IN SUPPORT THEREOF

CARL L. SHIPLEY

1108 National Press Building

Of Counsel: Washington, D.C. 20045
SHIPLEY SMOAK & AKERMAN (202) 783-1647

National Press Building

Washington, D.C. 20045 E. LEWIS HANSEN

. 2400 Gas Light Tower

CANDLER, COX, ANDREWS Atlanta, Georgia 30303

& HANSEN (404) 588-9400

2400 Gas Light Tower

Atlanta, Georgia 30303 Attorneys for Petitioners

THE CASILLAS PRESS, INC.-1717 K Street. N. W.—Washington, 0. C.-223-1220

(i)
TABLE OF CONTENTS

MOTION FOR LEAVE TO FILE PETITION FOR
ORIGINAL WRIT OF HABEAS CORPUS

SUBSCRIPTION AND VERIFICATION .
JURISDICTION .

REASONS FOR NOT MAKING APPLICATION TO
THE DISTRICT COURT .

QUESTIONS PRESENTED

STATUTORY PROVISIONS .

STATEMENT OF CASE

ARGUMENT .

CONCLUSION

DISTRICT COURT ORDER OF June 23, 1975.

DISTRICT COURT ORDER OF September
16, 1975 are ae oe

INDICTMENT OF April 17, 1974 .

TABLE OF CASES

Accardi v. Shaughnessy,
347 U.S. 260 (1954)

Carafas v. LaVallee,
391 U.S. 234 (1968).

Appendix i

. Appendix ii

Appendix iii

5, 14, 15, 18, 21

. 20

(ii)

Page IN THE
Cooper v. Aaron, Supreme Court of the Unite? States

oo a eee ee ee s » £8
OCTOBER TERM, 1975

Eagles v. Samuels,

ee es a
Jones v. Cunningham
= ae cin ae ee eae ee 11 FRED C. TALLANT, SR.,
WILLIAM M. WOMACK, JR.,
Peyton v. Rowe,
PT. The statute in question provides in relevant part as follows:
“The Commission may transmit such evidence as may be available
concerning such acts or practices to the Attomey General who may,
in his discretion, institute the necessary criminal proceedings under
this subchapter.” 15 U.S.C. §77t(b).

3la

General, but rather that the Securities and Ex-
change Commission may refer cases to him for
prosecution. The evident purpose of this section
was to insure that, in cases where the Commis-
sion determined that criminal prosecutions were
warranted but the United States Attorney de-
clined to prosecute, the Commission would be
entitled to have its evidence reviewed by the
Attorney General or his delegate.

Moreover, under any construction 15 U.S.C.
§77t(b) does not require personal action by the
Attorney General, for the Attorney General has

power to delegate “any function.” 28 U.S.C.
8510.

Under Giordano, and in light of the arguments of the par-
ties and the plain language of the statute, this court has
concluded that irrespective of whether the matter has
been authoritatively foreclosed by the aforementioned de
cisions of the courts that have considered defendants’ ap-
plications for extraordinary relief, the United States At-
torney, and his authorized assistant, did not exceed their
authority in presenting this matter to the grand jury and
in acting upon the resulting indictment. Cf. United States
v. Parrott, 248 F. Supp. 196, 199 (D. D.C. 1965) (rec-
ommendation to prosecute referred by S.E.C. to U.S. At-
torney, but indictment dismissed on speedy trial grounds).
See also United States v. Parrott, 425 F.2d 972 (2d Cir.),
cert. denied, 400 U.S. 824 (1970) (affirming conviction
on indictment returned in New York). Defendants argu-
ments to the contrary are without merit.

Accordingly, for the reasons hereinabove expressed,
defendants’ motion for reconsideration is hereby DENIED.

32a

In sum, this court has denied defendants’ motion for
severance, concluding that a joint trial of the offenses al
leged in the indictment and the parties herein would not
be inherently prejudicial or otherwise so prejudicial as to
be improper under Rule 8(a) or 8(b), thereby warranting
severance under Rule 14. The defendants’ motion for
reconsideration has also been DENIED.

IT IS SO ORDERED.
This, the 16th day of September, 1975.

/s/ RICHARD C. FREEMAN
United States District Judge

33a

APPENDIX iii

IN THE
UNITED STATES DISTRICT COURT FOR
THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION

* baa * * *

CRIMINAL INDICTMENT
THE GRAND JURY CHARGES:

COUNT ONE

1. From on or about May 18, 1967, and continuing up
to and including the date of the filing of this indictment, the
defendants, FRED C. TALLANT, SR. and WILLIAM M.
WOMACK, JR. (hereinafter sometimes singularly referred to
by their surnames and collectively as ““defendants’’), in‘ the
Northern District of Georgia and within the jurisdiction of
this Court, bu use of the mails in the offer and sale of se-
curities, namely the Class A Common Stock of Preferred
Land Corporation (hereinafter referred to as “PLC”’), a Geor-
gia corporation, did, directly and indirectly wilfully and
knowingly employ a device, scheme and artifice to defraud,
obtain money and property by means of untrue statements
of material facts and omissions to state material facts neces-
sary in order to make the statements made, in the light of
the circumstances under which they were made, not mislead-
ing, and engage in transactions, practices and a course of
business which operated and would operate as a fraud and
deceit upon purchasers of said securities, said purchasers
being generally that class of persons (hereinafter sometimes
referred to as “PLC investors”) whom defendants believed
could be induced to purchase said securities, all in the fol-
lowing manner:

34a

(a) On May 18, 1967 defendant TALLANT caused PLC
(ie., Preferred Land Corporation) to be incorporated under
the laws of Georgia with an authorized capital of 8,000,000
shares of $.05 par value Class A common stock and 2,000,
000 shares of $.05 par value Class B common stock, with
offices in Atlanta, Georgia. Shareholders of Class A common
stock of PLC were empowered to elect and did elect two
directors, while shareholders of Class B common stock of
PLC were empowered to elect and did elect three directors.
Defendant TALLANT effected control of PLC through own-
ership of 80% of its outstanding Class B common stock and
caused himself to be elected its President and a director and
his brother-in-law, defendant WOMACK, to be elected Secre-
tary-Treasurer and a director of PLC.

(b) Defendants TALLANT and/or WOMACK controlled
and owned directly or beneficially, several close Georgia cor-
porations, to wit: Tallant Properties, Inc., Tallant and Com-
pany, Atlanta Seals, Inc., Fidelity Securities, Inc., The Bos-
ton Company and Tri-Equity, Inc., which said corporations
defendants utilized in said scheme in the manner hereinafter
described.

(c) Commencing on or about May 18, 1967 and con-
tinuing to the date of the filing of this indictment, defend-
ants offered and sold and caused to be offered and sold to
PLC investors shares of the Class A common stock of PLC
for the purported purpose of financing PLC, as follows.

i. On or about June 8, 1967 defendants caused PLC
to commence a public offering of 1,200,000 shares of PLC
Class A common stock at $.10 per share.

ii. On or about October 16, 1967 defendants caused
PLC to commence a public offering of 1,100,000 shares of
PLC Class A common stock at $.25 per share.

2 tern ne s

35a

iii. On or about March 21, 1968 defendants caused
PLC to commence a public offering of 1,100,000 shares of
PLC Class A common stock at $.50 per share.

iv. On or about August 6, 1968 defendants caused
PLC to commence a public offering of 1,100,000 shares of
PLC Class A common stock at $1.00 per share.

v. On or about January 8, 1969 defendants caused
PLC to commence a public offering of 1,100,000 shares of
PLC Class A common stock at $2.00 per share.

vi. On or about June 25, 1969 defendants caused
PLC to commence a public offering of 1,100,000 shares of
PLC Class A common stock at $3.00 per share.

vii. On or about January 5, 1970 defendants caused
PLC to commence a public offering of 1,000,000 shares of
PLC Class A common stock at $5.00 per share.

(d) About September 30, 1967 defendants caused PLC
to issue to Tallant Properties, Inc. 44,000 shares of PLC
Class A common stock for $.10 per share. About March 29,
1968 defendants caused PLC to issue to Tallant Properties,
Inc. 2,000 shares of PLC Class A common stock for $.25
per share.

(e) When from time to time during the course of said
scheme PLC investors who had purchased shares in the afore-
said $.10, $.25, $.50 and $1.00 offerings on time-payment
plans defaulted on their payment defendants caused PLC
to foreclose said shares and the close corporations named
in sub-paragraph (b) of paragraph 1 of this count to acquire
them for the balance due thereon.

(f) When from time to time during the course of said
scheme PLC investors who had purchased shares in the afore-
said $.10 and $.50 offerings on time-payment plans default-

36a

ed on their payments, defendants caused PLC to foreclose
said shares and defendant TALLANT and a custodian for
defendant TALLANT’s minor children to acquire them for
the balance due thereon.

(g) Defendants caused said shares of PLC Class A com-
mon stock so acquired by said close corporations and by
defendant TALLANT and said custodian from time to time
to be sold to PLC investors at the then current offering price
as Original issue stock of PLC pursuant to the representation
that the proceeds from the sales thereof would be used for
specified corporate purposes of PLC when, as defendants at
all said times well knew, said shares were not original issue
stock of PLC and the proceeds from the sales thereof would
not be used for any corporate purposes of PLC, but instead,
would be and were diverted to the use and benefit of de-
fendants.

(h) As a further part of said scheme and to cover up
said fraudulent acts in order to avoid detection thereof by
investigative authorities, during the spring of 1969, the sum-
mer of 1970 and again during the spring of 1973, defend-
ants caused certain corporate records of PLC to be falsified
and defendants concealed or destroyed and caused to be
concealed or destroyed certain of such corporate records.

2. As a further part of said scheme and in order to ob-
tain monies and properties of PLC investors and to induce
them to invest in said PLC Class A common stock, defend-
ants made and caused to be made divers false, misleading
and fraudulent representations, pretenses and promises, both
orally and in writing, well knowing that said representations,
pretenses and promises were false, misleading and fraudulent
when made, including but not limited to the following:

Mes ee tt ee me ke ee ee eames eae

37a

(a) That the net proceeds to PLC from the sale of
all the shares of Class A common stock offered by means
of the prospectus dated January 8, 1969, would be
$1,870,000;

(b) That approximately 90% of the net proceeds to
PLC from the sale of all of the shares of Class A common
stock offered by means of the prospectus dated January
8, 1969, would be used by PLC to purchase, develop and
sell real property and the remaining 10% of said proceeds
would be used by PLC as general working capital;

(c) That there would be a public market for the
Class A common stock of PLC; and

(d) That all of the shares being offered were original
issue securities of PLC.

3. As a further part of said scheme and in order to
obtain monies and properties of PLC investors and to in-
duce them to invest in said PLC Class A common stock,
defendants concealed and omitted in prospectuses, sales
presentations, solicitations and otherwise, material facts
necessary in order to make the statements made, in the
light of the circumstances under which they were made,
not misleading, said facts being well known to defendants,
including but not limited to the following:

(a) That PLC investors would receive shares of PLC
Class A common stock previously acquired by defendant
TALLANT at prices substantially lower than the price at
which said shares were being offered to them;

(b) That PLC investors would receive shares of PLC
Class A common stock previously acquired by a custodian
for defendant TALLANT’s minor children at prices sub-
stantially lower than the price at which said shares were
being offered to them;

38a

(c) That PLC investors would receive shares of PLC
Class A common stock previously acquired by close corpo-
rations controlled by defendants at prices substantially lower
than the price at which said shares were being offered to
them;

(d) That the monies paid by PLC investors for shares
of PLC Class A common stock would not be available to
PLC for corporate purposes but would be diverted to the
use and benefit of defendants; and

(e) That at the same times PLC investors were offer-
ed shares of PLC Class A common stock, employees, offi-
cers and directors of PLC and friends of defendant TAL-
LANT were being offered shares of PLC Class A common
stock at substantially lower prices.

4. On or about April 18, 1969 defendants FRED C.
TALLANT, SR. and WILLIAM M. WOMACK, JR. did,
directly and indirectly, wilfully and knowingly, in the offer
and sale of securities, namely, the Class A common stock
of Preferred Land Corporation, by use of the mails, em-
ploy the aforesaid scheme and artifice to defraud, obtain
monies and properties by means of untrue statements of
material facts and omissions to state material facts neces-
sary in order to make the statements made, in the light of
the circumstances under which they were made, not mis-
leading, and engage in transactions, practices and a course
of business which operated and would operate as a fraud
and deceit upon the purchasers of said securities, including
Mary N. Hancock, said use of the mails being as follows:
On or about April 18, 1969 at Atlanta, Georgia, in the
Northern District of Georgia, defendants caused an envel-
ope containing a certificate for 1000 shares of Preferred
Land Corporation Class A common stock to be sent and
delivered by the Post Office Department of the United States,

oN Oe ©

39a

according to the direction thereon, to Mary N. Hancock,

2219 Peachtree Road, N.E., Apartment 9, Atlanta, Georgia

30309; all in violation of Section 77q(a), Title 15, U.S. Code.
$10,000/2 years or both

COUNT TWO

1. The Grand Jury realleges all of the allegations of Count
1 of this indictment except those contained in paragraph
numbered 4 thereof.

2. On or about April 20, 1969 defendants FRED C.
TALLANT, SR. and WILLIAM M. WOMACK, JR. did, di-
rectly and indirectly, wilfully and knowingly, in the offer
and sale of securities, namely, the Class A common stock of
Preferred Land Corporation, by use of the mails, employ
the aforesaid scheme and artifice to defraud, obtain monies
and properties by means of untrue statements of material
facts and omissions to state material facts necessary in order
to make the statements made, in the light of the circum-
stances under which they were made, not misleading, and
engage in transactions, practices and a course of business
which oprated and would operate as a fraud and deceit upon
the purchasers of said securities, including Larry C. Dukehart,
said use of the mails being as follows: On or about April 20,
1969 at Atlanta, Georgia, in the Northern District of Georgia,
defendants caused an envelope containing a certificate for
500 shares of Preferred Land Corporation Class A common
stock to be sent and delivered by the Post Office Department
of the United States, according to the direction thereon,
to Larry C. Dukehart, 212 Adair Street, Decatur, Georgia
30030; all in violation of Section 77q(a), Title 15, U.S. Code.

$10,000/2 years or both

40a

COUNT THREE

1. The Grand Jury realleges all of the allegations of Count
1 of this indictment except those contained in paragraph
numbered 4 thereof.

2. On or about May 30, 1969 defendants FRED C. TAL-
LANT, SR. and WILLIAM M. WOMACK, JR. did, directly
and indirectly, wilfully and knowingly, in the offer and sale
of securities, namely, the Class A common stock of Prefer-
red Land Corporation, by use of the mails, employ the afore-
said scheme and artifice to defraud, obtain monies and prop-
erties by means of untrue statements of material facts and
omissions to state material facts necessary in order to make
the statements made, in the light of the circumstances under
which they were made, not misleading, and engage in trans-
actions, practices and a course of business which operated
and would operate as a fraud and deceit upon the purchasers
of said securities, including Mrs. T.T. Jackson, Sr., said use
of the mails being as follows: On or about May 30, 1969 at
Atlanta, Georgia, in the Northern District of Georgia, de-
fendants caused an envelope containing a certificate for 500
shares of Preferred Land Corporation Class A common stock
to be sent and delivered by the Post Office Department of
the United States, according to the direction thereon, to
Mrs. T.T. Jackson, Sr., 308 Second Avenue, Manchester,
Georgia 31816; all in violation of Section 77q(a), Title 15,
U.S. Code.

$10,000/2 years or both

COUNT FOUR

1. The Grand Jury realleges all of the allegations of Count
1 of this indictment except those contained in paragraph
numbered 4 thereof.

4la

2. On or about May 15, 1969 defendants FRED C.
TALLANT, SR. and WILLIAM M. WOMACK, JR. did, di-
rectly and indirectly, wilfully and knowingly, in the offer
and sale of securities, namely, the Class A common stock
of Preferred Land Corporation, by use of the mails, employ
the aforesaid scheme and artifice to defraud, obtain monies
and properties by means of untrue statements of material
facts and omissions to state material facts necessary in order
to make the statements made, in the light of the circum-
stances under which they were made, not misleading, and
engage in transactions, practices and a course of business
which operated and would operate as a fraud and deceit
upon the purchasers of said securities, including Dale R.
Brown, said use of the mails being as follows: On or about
May 15, 1969 at Atlanta, Georgia, in the Northen District
of Georgia, defendants caused an envelope containing a cer-
tificate for 5,000 shares of Preferred Land Corporation
Class A common stock to be sent and delivered by the Post
Office Department of the United States, according to the
direction thereon, to Dale R. Brown, 781 San Antonio Drive,
N.E., Atlanta, Georgia 30306; all in violation of Section 77
q(a), Title 15, U.S. Code.

$10,000/2 years or both

COUNT FIVE

1. The Grand Jury realleges all of the allegations of Count
1 of this indictment except those contained in paragraph
numbered 4 thereof.

2. On or about May 6, 1969 defendants FRED C. TAL-
LANT, SR. and WILLIAM M. WOMACK, JR. did, directly
and indirectly, wilfully and knowingly, in the offer and sale
of securities, namely, the Class A common stock of Prefer-
red Land Corporation, by use of the mails, employ the afore-

42a

said scheme and ar’ fice to defraud, obtain monies and prop-
erties by means of untrue statements of material facts and
omissions to state material facts necessary in order to make
the statements made, in the light of the circumstances under
which they were made, not misleading, and engage in trans-
actions, practices and a course of business which operated
and would operate as a fraud and deceit upon the purchasers
of said securities, including Kathryn S. James, said use of
the mails being as follows: On or about May 6, 1969 at At-
lanta, Georgia, in the Northern District of Georgia, defend-
ants caused an envelope containing a certificate for 500
shares of Preferred Land Corporation Class A common stock
to be sent and delivered by the Post Office Department of
the United States, according to the direction thereon, to
Kathryn S. James, 423 Tara Trail, N.W., Atlanta, Georgia
30327: all in violation of Section 77q(a), Title 15, U.S. Code.
$10,000/2 years or both

COUNT SIX

1. The Grand Jury realleges all of the allegations contain-
ed in subparagraphs (a), (b), (c), (d), (e), (f), (g) and (h) of
paragraph numbered | and paragraphs numbered 2 and 3 of
Count one of this indictment as constituting and describing
a scheme and artifice devised and intended to be devised by
defendants FRED C. TALLANT, SR. and WILLIAM M. 4
MACK, JR., during the period from on or about May 18,
1967 to on or about the date of the filing of this indictment,
to defraud and to obtain monies and properties by means of
false and fraudulent pretenses, representations and promises,
well knowing at the time that the pretenses, representations
and promises would be and were false when made, and said
defendants wilfully and knowingly made use of the mails in
the following manner:

ak com ll

eS Ns a cena OM ee et ta 3 i,

43a

2. On or about the 2nd day of June, 1969 in the North-
ern District of Georgia and within the jurisdiction of this
Court, defendants for the purpose of executing the afore-
said scheme and artifice and attempting to do so, caused to
be placed in an authorized depository for mail matter, a
certificate for 2500 shares of Class A common stock of
Preferred Land Corporation enclosed in an envelope address
ed to Morris I. McDonald, Post Office Box 4941, Atlanta,
Georgia 30307, to be sent and delivered by the Post Office
Department of the United Stats; all in violation of Section
1341, Title 18, United States Code.

$1,000/5 years or both

COUNT SEVEN

1. The Grand Jury realleges all of the allegations contain-
ed in subparagraphs (a), (b), (c), (d), (e), (f), (g), and (h) of
paragraph numbered 1 and paragraphs numbered 2 and 3 of
Count One of this indictment as constituting and describing
a scheme and artifice devised and intended to be devised by
defendants FRED C. TALLANT, SR. and WILLIAM M. WO-
MACK, JR., during the period from on or about May 18,
1967 to on or about the date of the filing of this indictment,
to defraud and to obtain monies and properties by means of
false and fraudulent pretenses, representations and promises
well knowing at the time that the pretenses, representations
and promises would be and were false when mailed and said

defendants wilfully and knowingly made use of the mails in
the following manner:

2. On or about the 22nd day of April, 1969, in the North-
em District of Georgia and within the jurisdiction of this
Court, defendants for the purpose of executing the aforesaid
scheme and artifice and attempting to do so, caused to be
placed in an authorized depository for mail matter, a con-

a

44a

firmation for 1500 shares of the Class A common stock of
Preferred Land Corporation enclosed in an envelope address-
ed to Ronald L. Case, 3297 Embry Hills Drive, Atlanta,
Georgia 30005, to be sent and delivered by the Post Office
Department of the United States; all in violation of Section
1341, Title 18, U.S. Code.

$ 1,000/5 years or both

COUNT EIGHT

1. The Grand Jury realleges all of the allegations contain-
ed in subparagraphs (a), (b), (c), (d), (e), (f), (g) and (h) of
paragraph numbered | and paragraphs numbered 2 and 3 of
Count One of this indictment as constituting and describing
a scheme and artifice devised and intended to be devised by
defendants FRED C. TALLANT, SR. and WILLIAM M. WO-
MACK, JR. during the period from on or about May 18,
1967 to on or about the date of the filing of this indictment,
to defraud and to obtain monies and properties by means of
false and fraudulent pretenses, representations and promises,
well knowing at the time that the pretenses, representations
and promises would be and were false when made, and said
defendants wilfully and knowingly made use of the mails in
the following manner:

2. On or about the 2nd day of June, 1969, in the North-
ern District of Georgia and within the jurisdiction of this
Court, defendants for the purpose of executing the aforesaid
scheme and artifice and attempting to do so, caused to be
placed in an authorized depository for mail matter, a certifi
cate for 500 shares of the Class A common stock of Prefer-
red Land Corporation enclosed in an envelope addressed to
B. Harold & Marguerite C. Guy, P.O. Box 267, Manchester,
Georgia 31818, to be sent and delivered by the Post Office

ahem ant ecm

; ae

AD ree Se st I a ee ee

45a

Department of the United States; all in violation of Section
1341, Title 18, U.S. Code.
$1,000/5 years or both

COUNT NINE

1. The Grand Jury realleges all of the allegations contain-
ed in subparagraphs (a), (b), (c), (d), (e), (f), (g) and (h) of
paragraph numbered | and paragraphs numbered 2 and 3 of
Count One of this indictment as constituting and describing
a scheme and artifice devised and intended to be devised by
defendants FRED C. TALLANT, SR. and WILLIAM M. WO-
MACK, JR., during the period from on or about May 18,
1967 to on or about the date of the filing of this indictment,
to defraud and to obtain monies and properties by means of
false and fraudulent pretenses, representations and promises,
well knowing at the time that the pretenses, representations
and promises would be and were false when made, and said
defendants wilfully and knowingly made use of the mails in
the following manner:

2. On or about the 2nd day of June, 1969, in the North-
ern District of Georgia and within the jurisdiction of this
Court, defendants for the purpose of executing the aforesaid
scheme and artifice and attempting to do so, caused to be
placed in an authorized depository for mail matter, a certifi-
cate for 100 shares of the Class A common stock of Prefer-
red Land Corporation enclosed in an envelope addressed to
Robert M. Long, Warm Springs, Georgia 31830, to be sent
and delivered by the Post Office Department of the United
States; all in violation of Section 1341, Title 18, U.S. Code.

$1,000/5 years or both

46a

COUNT TEN

1. The Grand Jury realleges all of the allegations contain-
ed in subparagraphs (a), (b), (c), (d), (e), (f), (g) and (h) of
paragraph numbered 1 and paragraph numbered 2 and 3 of
Count One of this indictment as constituting and describing
a scheme and artifice devised and intended to be devised by
defendants FRED C. TALLANT, SR. and WILLIAM M. WO-
MACK, JR., during the period from on or about May 18,
1967 to on or about the date of the filing of this indictment,
to defraud and to obtain monies and properties by means
of false and fraudulent pretenses, representations and prom-
ises, well knowing at the time that the pretenses, representa-
tions and promises would be and were false when made, and
said %cfendants wilfully and knowingly made use of the mails
in the following manner:

2. On or about the 13th day of May, 1969, in the North-
ern District of Georgia and within the jurisdiction of this
Court, defendants for the purpose of executing the aforesaid
scheme and artifice and attempting to do so, caused to be
placed in an authorized depository for mail matter, a certifi-
cate for 100 shares of the Class A common stock of Prefer-
red Land Corporation enclosed in an envelope addressed to
Thad F. Blackstock, Jr., Decatur, Georgia, to be sent and
delivered by the Post Office Department of the United States;
all in violation of Section 1341, Title 18 U.S. Code.

$1,000/5 years or both

COUNT ELEVEN

Prior to the 18th day of May, 1967, and continuing to on
or about the date of the filing of this indictment, defendants
FRED C. TALLANT, SR. and WILLIAM M. WOMACK, JR..,
in the Northern District of Georgia, at Atlanta, Georgia, and

ee er ee ee ee ees

47a

at divers other places, did unlawfully, wilfully and knowing-
ly conspire, combine, confederate and agree with each other
and with divers other persons whose names to the Grand
Jury are unknown, to commit certain offenses against the
United States, in violation of Section 371, Title 18, U.S.
Code, to wit: To wilfully and knowingly violate Section 77
q(a), Title 15, U.S. Code and Section 1341, Title 18, U.S.
Code, and among such violations to commit the divers of-
fenses charged against said defendants in Counts One to Ten
inclusive of this indictment, the allegations of which Counts
are hereby realleged and incorporated in this Count as fully
as if here repreated, and each and all of the acts of said de
fendants as alleged in the aforesaid Counts One to Ten in-
Clusive are hereby designated as overt acts of said defendants,
done in pursuance of and to effect the objects of said con-
spiracy, and, in addition thereto, said defendants, in pur-
suance of said conspiracy and to effect the objects thereof,
did commit the following overt acts, to wit:

OVERT ACTS
1.

On or about April 4, 1973 defendant WOMACK presented
to Securities and Exchange Commission Investigators for their
examination certain Preferred Land Corporation stock trans-
fer records which he had caused to be falsified.

2.

On or about May 5, 1969, WOMACK endorsed Check No.
124 drawn on First National Bank of Atlanta, Georgia, Ac-
count No. 16-353-88-0 of Shadburn and Company and re-
ceived $5,000 which was the proceeds of the sales of 2500
shares of the Class A common stock of Preferred Land Cor-

48a

poration paid by PLC investors Donald L. Schwock, Kathryn
S. James, Virginia A. Marshal, Elizabeth Rogers, Roudolph
B. Spivey, and Eugene C. Sullivan.

3.

On or about May 20, 1969 defendant TALLANT endorsed
Check No. 316 drawn on First National Bank of Atlanta,
Georgia, Account No. 28-863-38-0 of Charles M. Bryan, III
and received $10,000 which was the proceeds of the sale of
5,000 shares of the Class A common stock of Preferred Land
Corporation paid by PLC investor Dale R. Brown.

$10,000/5 years or both

COUNT TWELVE

In or about July, 1970, and continuing to on or about
the date of the filing of this indictment, defendant WILLIAM
M. WOMACK, JR. corruptly influenced, obstructed and im-
peded and endeavored to influence, obstruct and impede the
due and proper administration of the Securities Act of 1933
[15 U.S.C. 77] under which a proceeding was being had be-
fore the Securities and Exchange Commission, an agency of
the United States, in that defendant WOMACK caused cer-
tain stockholder ledger records of Preferred Land Corpora-
tion to be falsified and presented them to Securities and Ex-
change Commission investigators for examination, in violation
of Section 1505, Title 18, U.S. Code.

$5,000/5 years or both

A BILL.

FOREMAN

POR Hime Me “ -

Oe es OS Mee

49a

JOHN W. STOKES, JR.
United States Attorney

DOROTHY T. BEASLEY
Assistant United States Attorney

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385003_1148%3A1. Public record. Not legal advice.