Reiswig v. Department of Corporations

Opinion

FYBEL, J.

Introduction

This case presents a single issue: Whether the investment offered by Fidelity Insured Deposits, Inc. (Fidelity), constitutes a security under California law, subject to the regulatory jurisdiction of the California Department of Corporations (DOC). We conclude the investment was not a security and affirm.

Fidelity offered prospective investors yields on certificates of deposit (CD’s) greater than was available at any bank. Prospective customers were required to make an appointment and personally meet with a Fidelity sales agent. The sales agent would inform the…