SECURITIES: Front Money

In New York and other financial centres last week the Securities & Exchange Commission began cleaning up an international "front money" racket. As uncovered by SEC on the West Coast, the racket works as follows: a broker with a luxurious office advertises he can obtain capital up to $100,000 for persons with ideas or assets to capitalize. The sucker pays $250 to $2,500 to file a prospectus, smaller fees to organize a corporation and qualify its securities in New York. One Paul E. Reinhardt, front man for front money in Los Angeles,...

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