Feno

I respectfully dissent.

We are mandated by the California Constitution, article VI, section 13, not to set aside a judgment “on the ground of misdirection of the jury . . . or for any error as to any matter of procedure, unless, after an examination of the entire cause, including the evidence [we are] of the opinion that the error complained of has resulted in a miscarriage of justice.” Reversing the jury verdict here violates this most fundamental of appellate court rules.

The key issue of fact in this case was whether Feno sold securities in violation of the Corporate Securities Law (Corp. Code, §§ 25110, 25540). The evidence is overwhelming—for the most part uncontested—proving beyond any reasonable doubt that Feno is guilty of the crimes as charged.

These facts are: Several unskilled investors, through advertisements and other invitations, were induced to place substantial sums of money in Feno’s hands. Feno was to select and purchase vehicles, recondition them and ultimately sell them. These investors depended upon Feno’s representations and honesty to manage the business. These investors had no responsibility beyond turning over their money to Feno. No investor had any…

Joseph Earnest Feno appeals from the judgment entered on jury verdicts convicting him of selling securities in violation of the Corporate Securities Law of 1968. (Corp. Code, §§ 25110, 25540.) 1 For the reasons set forth below, we reverse the judgment.

Factual and Procedural Background

In late 1978 Feno left his employment as a meatcutter and started a used car business. Thinking additional capital would enable him to make more *724 money, he advertised in two local newspapers that he had an excellent investment opportunity. Several people responded. Feno’s deal was simple: the investor would give him money so he could purchase used cars at auctions, Feno would then recondition the cars selling them at a profit to be shared with the investor. Each investor had his or her own financial arrangement, but each signed a similar “investor’s contract.” Although some of the investors knew others also were investing, each investor “owned” specific cars and would make money only when those particular cars were sold. Feno’s sales technique included his suggestion the investors could become involved in the business. For example, at his suggestion some of the investors obtained…

Joseph Earnest Feno appeals from the judgment entered on jury verdicts convicting him of selling securities in violation of the Corporate Securities Law of 1968. (Corp. Code, §§ 25110, 25540.) [1] For the reasons set forth below, we reverse the judgment.

In late 1978 Feno left his employment as a meatcutter and started a used car business. Thinking additional capital would enable him to make more money, he advertised in two local newspapers that he had an excellent investment opportunity. Several people responded. Feno's deal was simple: the investor would give him money so he could purchase used cars at auctions, Feno would then recondition the cars selling them at a profit to be shared with the investor. Each investor had his or her own financial arrangement, but each signed a similar "investor's contract." Although some of the investors knew others also were investing, each investor "owned" specific cars and would make money only when those particular cars were sold. Feno's sales technique included his suggestion the investors could become involved in the business. For example, at his suggestion some of the investors obtained vehicle salespersons' licenses…