North Carolina reached a settlement with Hutton.

Under the agreement, the brokerage firm agreed to give investors in the state the option of getting back the approximately $3 million they put into the Silver Screen II movie partnership. On May 22, Daniel Bell III, North Carolina’s deputy securities administrator, issued a stop order to halt sales of units in Silver Screen II because E. F. Hutton & Co. went ahead with the offering in the state without registering the securities. Hutton held a nationwide offering of units of Silver Screen, a partnership set up to raise funds for 10 to 15 films to be produced by Walt Disney.