SECURITIES AND EXCHANGE COMMISSION

v.

THE FUNDPACK, INC., ET AL. APPEAL OF MORRIE SCHACTMAN

PER CURIAM.

This cause came on to be heard on the record on appeal from the United States District Court for the District of Columbia and was briefed and argued by counsel.

The District Court, at the time of the issuance of the injunctions in this case, did not have the benefit of this court’s opinion in SEC v. Savoy Industries, Inc., 665 F. 2d 1310 (D.C.Cir. 1981). Since many of the issues raised on this appeal were addressed in Savoy Industries, it is

ORDERED and ADJUDGED by this court that the record in this case is hereby remanded to the District Court for a brief statement of reasons, with relevant facts, justifying the breadth of each injunction under review. See Schmidt v. Lessard, 414 U.S. 473, 476, 94 S.Ct. 713, 715, 38 L.Ed.2d 661 (1974) (per curiam); Globe Slicing Machine Co. v. Hasner, 333 F. 2d 413, 415-416 (2d Cir. 1964), cert. denied, 379 U.S. 969, 85 S.Ct. 666, 13 L.Ed.2d 562 (1965). In view of Savoy Industries, the District Court may consider whether one or more of the injunctions should be modified. The District Court may consider suggestions from counsel for the parties as to the issues on remand.

During remand the injunctions issued by the District Court will remain in effect. The record herein should be returned to this court within ninety (90) days from the date of this order. APPENDIX

SECURITIES AND EXCHANGE COMMISSION, Plaintiff,

v. THE FUNDPACK, INC., et al., Defendants.

Civ. A. No. 79-859.

United States District Court, District of Columbia.

Nov. 20, 1980.

FINAL JUDGMENT OF PERMANENT INJUNCTION AS TO DEFENDANT MORRIE SCHACTMAN

JUNE L. GREEN, District Judge.

Plaintiff Securities and Exchange Commission (“Commission”) has filed its Amended Complaint and its Motion for Summary Judgment (“Motion”) pursuant to Rule 56, Fed.R.Civ.P., as to defendant Morrie Schactman (“Schactman”) and Schactman has filed his answer to the Amended Complaint and his opposition to the Commission’s Motion. The Court has considered the memoranda, affidavits and exhibits and other evidence submitted by the parties in support of and in opposition to the Motion and has been otherwise fully advised as to the premises. The Court finds upon the basis of the foregoing that there is no genuine issue as to any fact material to the outcome of the Commission’s action as to Schactman and that these facts establish that, as a matter of law, the Court should enter the relief as to Schactman sought by the Commission in the Amended Complaint. Accordingly, it is hereby:

I

ORDERED, ADJUDGED AND DECREED that Schactman and his agents, servants, employees, attorneys, successors and assigns, and those persons in active concert or participation with them, and each of them, be, and they hereby are, permanently enjoined from, directly or indirectly, singly or in concert with or aiding or abetting any other person, in connection with the purchase or sale of any security, by use of any means or instrumentality of interstate commerce or of the mails or of any facility of any national securities exchange:

(1) employing any device, scheme or artifice to defraud; or

(2) making any untrue statement of material fact or omitting to state a material fact necessary to make the statements made, in the light of the circumstances under which they were made, not misleading; or

(3) engaging in any act, practice or course of business which operates or would operate as a fraud or deceit upon any person.

[Section 10(b), Securities Exchange Act of 1934, 15 U.S.C. § 78j(b), and Rule 10b-5 thereunder, 17 C.F.R. § 240.10b-5]

II

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Schactman and his agents, servants, employees, attorneys, successors and assigns and those persons in active concert or participation with them, and each of them, be, and they hereby are, permanently enjoined from, directly or indirectly, singly or in concert with or aiding or abetting any other person, in the offer or sale of securities, by the use of the means or instruments of transportation or communication in interstate commerce, or by the use of the mails:

(1) employing any device, scheme or artifice to defraud; or

(2) obtaining money or property by means of any untrue statement of a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or

(3) engaging in any transaction, practice or course of business which operates or would operate as a fraud or deceit upon the purchaser. [Section 17(a), Securities Act of 1933 (“Securities Act”), 15 U.S.C. § 77q(a)]

III

(1) employing any device, scheme or artifice to defraud any client; or

(2) engaging in any transaction, practice, or course of business which operates as a fraud or deceit upon any client or prospective client; or (3) engaging in any act, practice or course of business which is fraudulent, deceptive or manipulative.

[Section 206, Investment Advisers Act of 1940, 15 U.S.C. § 80b-6]

IV

[Section 36(a), Investment Company Act of 1940 (“Investment Company Act”), 15 U.S.C. § 80a-35(a) ]

V

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Schactman and his agents, servants, employees, attorneys, successors, and assigns, and those persons in active concert or participation with them, and each of them, be, and they hereby are, permanently enjoined from, directly or indirectly, singly or in concert with or aiding or abetting any other person, serving or acting as officer, director, member of any advisory board, investment advisor, or depositor or as principal underwriter (if of an open-end company, unit investment trust, or face-amount certificate company) for any registered investment company.

[Section 36(a), Investment Company Act, 15 U.S.C. § 80a-35(a) ]

VI

[Section 34(b), Investment Company Act, 15 U.S.C. § 80a-33(b) ]

VII

VIII

[Section 20(a), Investment Company Act, 15 U.S.C. § 80a — 20(a) ]

IX

[Section 15(c), Investment Company Act, 15 U.S.C. § 80a-15(c) ]

X

XI

[Section 5, Securities Act, 15 U.S.C. § 77e]

XII

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that Schactman and his agents, servants, employees, attor neys, successors and assigns, and those persons in active concert or participation with them, and each of them, be, and they hereby are, permanently enjoined from, directly or indirectly, singly or in concert with or aiding or abetting any other person, causing any registered investment company (the “acquiring company”) to purchase Or acquire shares of any other investment company (the “acquired company”) such that immediately after such purchase or acquisition the acquiring company owns in the aggregate more than 3% of the total outstanding voting stock of the acquired company.

[Section 12(d)(lXA)(i), Investment Company Act, 15 U.S^C. § 80a — 12(d)(l)(A)(i) ]

XIII

[Section 13(a)(3), Investment Company Act, 15 U.S.C. § 80a — 13(a)(3) ]

There being no just reason for delay, the Clerk of the Court is hereby directed to enter this Final Judgment pursuant to Rule 54(b), Fed.R.Civ.P.