Holmberg v. Marsden

Plaintiff seeks to recover from defendants $5,000 furnished by plaintiff for a one-third interest in a business enterprise. He claims that payment of his money into the business before a permit had been secured for issuance of his one-third share of stock in a corporation which all parties agreed was to be formed, constituted a sale by defendants of securities in violation of the Corporate Securities Act (see Corp. Code, § 25000 et seq.) Judgment was rendered in defendants’ favor by the court, sitting without a jury, and plaintiff appeals. We have concluded that the evidence supports the…