In E. F. Hutton & Company v. Brown (S.D.Tex. 1969) 305 F.Supp. 371, the district court found that "nothing establishes that the defendant, a former regional vice-president of Hutton believed or should have believed that the Hutton attorneys were appearing only for Hutton--in fact the record has persuaded this court to the contrary." (305 F.Supp. at p. 391.) The Hutton attorneys had worked with the defendant in connection with investigations by the Securities and Exchange Commission (SEC) and the Bankruptcy Court into a transaction in which the defendant was a central figure, and they appeared with him when he gave sworn testimony to the SEC and when he testified at a public hearing conducted before a bankruptcy trustee, in which the SEC participated. The district court found that it was "not accurate to say, as Hutton does, that the SEC and the Westec trustee were investigating only Hutton, and the defendant, who appeared solely as Hutton's spokesman. The SEC and the trustee were investigating a multitude of transactions in Westec stock and were examining in depth, the conduct of every person connected with or having knowledge of such transactions. The defendant testified for himself as well as for Hutton." (Id. at p. 388.) On both occasions in which he testified, the defendant stated on the record that he was represented by the attorneys and both official transcripts stated that he was represented by the attorneys. (Id. at pp. 385-387.) The SEC investigation led to a federal grand jury indictment of eight persons and the bankruptcy trustee's report became the complaint in civil actions brought against Hutton and the defendant. (Id. at pp. 384-385.) Thus, unlike the situation in the present case, the attorneys that were disqualified from representing Hutton in a subsequent action against the defendant based upon the Westec stock transaction were found to have represented and to have been reasonably understood to be representing the former officer as well as the entity in connection with the prior related proceedings. (Id. at p. 401.)