International Mining Exchange and a person named Parker sold a “Gold Tax Shelter Investment Program.” Anyone who wished to invest had to write a check payable to an individual designated by...

International Mining Exchange and a person named Parker sold a “Gold Tax Shelter Investment Program.” Anyone who wished to invest had to write a check payable to an individual designated by International Mining and sign certain papers. Investors acquired a leasehold interest in a gold mine with proven reserves, and they agreed to allow International Mining to arrange for sale options to purchase the gold that would be mined. In effect, investors received the right to profits from the gold mined, plus a tax deduction based on the cost of developing the mine. The SEC claimed that this transaction involved “securities” and thus was not exempt from registration under the 1933 Act. International Mining claimed that this transaction did not fall within the definition of a security. What was the result? Explain.