Sixteen months ago, New York's Democratic Congressman Louis B. Heller began looking for skeletons in SEC's closet. Last week, after poring over 742 cases from SEC's files and calling 100 witnesses, Heller's subcommittee handed in its report. In general, it said, SEC had done "a commendable job." But in its rummaging, the committee rattled the bones of several controversial cases, said the incoming Congress should investigate further. Among the cases:

The Badger Case, involving Salt Lake City Broker-Dealer Richard C. Badger, who committed suicide in March 1951 after embezzling $648,000 from his customers. SEC examiners had found nothing wrong with...

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