Ned B. Majors and Tax Lien Agents, Inc., Appellants, v. South Carolina Securities Commission, Respondent., 373 S.C. 153

Summary

A reviewing court affirmed. The state's highest court certified the case from the South Carolina Court of Appeals. The state's highest court held that it did not have to defer to the lower court as the securities issue was a novel question of law. The Commissioner had authority to issue a cease and desist order. The sellers' due process rights were not violated. They had a hearing by an independent AHO, they appealed the Commissioner's final cease and desist order, and they were allowed to post a bond to stay enforcement of that order pending appeal. The order had further been stayed by this appeal. The sale of TLCs was a sale of a security. The sale was the sale of an investment contract as it involved an investment of money. The principals paid an up-front agency fee, all fees and expenses associated with the purchases, the expenses associated with establishing clear title, and a fee of 50 percent of the profits. A strict vertical commonality test was properly applied to determine ...