§ 2.9.4

• Jurisdiction: Arizona

§ 2.9.4 Formation of the Arizona Securities Division: 1949

The proposed legislation provided for a Securities Division with experienced staff to cure the lack of investigative resources that had prevented the Corporation Commission from investigating the legitimacy of new securities offerings.³⁵² To do the work, the legislation budgeted for a director and assistant director of securities as well as supporting staff.³⁵³ Before that, securities enforcement had been handled by an Investment and Securities Department whose only staff was a part-time stenographer.³⁵⁴

After the legislation passed in early 1949, Jacobson was passionate about the new Securities Division and the need to stop securities fraud. A memo from the SEC's San Francisco office described him as a "fire ball."³⁵⁵ Jacobson wanted a strong Securities Director. He and the Securities Committee supported Earl Hastings, 41, for the position.³⁵⁶

Hastings was appointed in July 1949.³⁵⁷ His qualifications were sound but unremarkable. He had no legal experience. He had studied business and engineering in college.³⁵⁸ Afterward, he worked in managerial and consulting positions for a variety of...