People v. Smith

Opinion

GILBERT, J.

Here we hold * that the definition of a security in California does not depend upon whether or not it is exempt from qualification under the California Corporate Securities Act.

Jerry Donald Smith was convicted of two counts of violating Penal Code section 487, subdivision 1 (grand theft) and two counts of violating Corporations Code section 25401 (securities fraud). We affirm.

On the People’s cross-appeal, we aifirm dismissal of two counts alleging securities fraud. Smith may not be held criminally liable for failing to inform potential investors about a prior misdemeanor…