Shepherd v. State

Summary

The Arkansas Supreme Court held that the evidence was insufficient to convict Shepherd of acting as a broker-dealer or selling an unregistered security under the Arkansas Securities Act. The court concluded that the transaction was an isolated non-issuer transaction exempt from the Act and reversed the judgment, dismissing the charge.

Holdings

1. The evidence was insufficient to establish that Shepherd operated or purported to act as a broker-dealer because there was no evidence that he was engaged in the business of effecting securities transactions.
2. The conviction for selling an unregistered security could not stand because the evidence did not establish the required broker-dealer conduct and the transaction was exempt as an isolated non-issuer transaction.

Questions Presented

1. Whether the evidence established that Shepherd operated as a broker-dealer in violation of Ark. Stat. Ann. § 67-1237.
2. Whether the evidence supported a conviction for selling an unregistered security under Ark. Stat. Ann. § 67-1241.
3. Whether the isolated sale of an interest in an oil and gas lease was exempt from the Arkansas Securities Act as an isolated non-issuer transaction.

Disposition

reversed