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Somebody v. Figueroa (1986) 41 Cal.3d 714 , 224 Cal.Rptr. 719; 715 P.2d 680 [Crim. No. 24252. Finest Legal of Ca. April 7, 1986.]
(Thoughts by Bird, C. J., with Mosk, Broussard, Grodin, JJ., and Takei (Taketsugu), J., concurring. Independent visit the web site concurring viewpoint from the Reynoso, J., which have Lucas, J., concurring.)
John K. Van de Kamp, Lawyer Standard, Edward P. O’Brien, Assistant Lawyer General, Derald Age. Granberg and you can Robert R. Granucci, Deputy Attorneys Standard, having Plaintiff and you may Respondent.
The primary question shown by this focus is whether the demo legal, within the good prosecution on marketing regarding unqualified securities, erred [41 Cal.3d 718] from inside the training new jury this 1 “Business Promissory Notes” was in fact “securities” during the meaning of the corporate Securities Rules. (Corp. Password, § 25000 ainsi que seq. fn. 1)
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Joseph and you will Dennis Figueroa focus of a view from belief for one number out-of attempting to sell unqualified securities. (§§ 25110, 25540.) The latest jury deadlocked towards the thirteen additional counts, eight so-called facing Joseph and you can four against Dennis. Thereafter, a great mistrial is actually declared for the those people counts, and additionally they had been dismissed towards the realizing that they might be sensed by the courtroom to have restitution purposes. Each other appellants received regards to probation which have requirements along with restitution, a dangling condition prison title, and neighborhood service.
In middle-March away from 1979, Arlo Kurrle responded to an advertisement which in fact had appeared in the latest San Jose Mercury News. The newest offer said “Solar power & Opportunity Organization. Lover wanted which have $seven,000 or higher. Active or nonactive.” Kurrle named among a couple cell phone numbers placed in the latest advertisement and you may spoke in order to Joseph Figueroa, whom revealed a current insulation providers along with his desire to develop on solar energy.
Kurrle met Joseph and his awesome son, Dennis, the next day. This new Figueroas told Kurrle about Figueroa Insulation & Energy Co., Inc. (Insulation) from which Dennis try chairman. The latest solar powered energy organization could getting a company. Kurrle learned about a couple others, Figueroa Financial Insurance rates Characteristics, Inc. (Insurance) and you will Figueroa Organization & Economic Specialists (Financial).
Joseph and you can Dennis suggested you to definitely Kurrle purchase $10,100000 inside their company. The bucks was to be used into the purchase of insulation products together with installation of telephones always solicit mortgage users.
On very first conference, Kurrle and Joseph discussed whether Kurrle were to be effective in the the organization. Kurrle indicated interest in having an immediate character, perhaps on the sales or management components.
A short time afterwards, Kurrle called Joseph and wanted to lend the business $ten,100000. You will find zero dialogue on what form Kurrle’s financial support [41 Cal.three dimensional 719] do capture, but Kurrle “was thinking when it comes to a loan . that would be recorded.” From inside the discussion, Joseph told Kurrle he could well be a police officer in a single of Figueroa businesses.
Along side next per month, Kurrle paid the money towards Figueroas from inside the four independent installment payments confirmed of the four 2-season notes. fn. 2 The latest notes were to secure 10 percent appeal annually. Kurrle had the solution to just take fee into the bucks or offers of your own team. New fourth financing installment, having $dos,five hundred, constituted the foundation to the charge on which the Figueroas had been at some point found guilty. fn. 3 Kurrle generated that loan giving the fresh Figueroas a payable so you’re able to Dennis. The loan was saw by good “Firm Promissory Mention” out of Insulation which had been signed because of the Dennis. In the related part they stated:
On Really worth Gotten, for the otherwise Ahead of 2 years immediately after big date, instead sophistication The Figueroa Insulation & Opportunity Team, Inc., intends to spend towards the order out of Mr. Arlo Kurrle, regarding San Jose, California otherwise during the their office or home. [¶] The sum $2,500 a couple of thousand bucks & 500 at the speed away from 10% % annum up until paid. . [¶] . The [sic] arranged and knew, this particular business mention is perhaps all due a keen [sic] payable in the 2 years out of date associated with the note and its particular [sic] further agreed and understood, you to attract is usually to be reduced yearly [sic] every year, but every due and payable April 27th, 1981. . “