Bounds

Plaintiffs Monroe and Eldra Bounds (Bounds) and Gene and Grace Hand (Hands) seek damages for fraud perpetrated upon them by the corporate defendants Figurettes, Inc., and Susan’s of California, Inc., through individual defendants Hi Hand (no relation to the plaintiffs Hands), Angela Serritella, Del Remme and other individually named codefendants (collectively called Figurettes). The fraudulent acts recited are both of the common law variety, to wit, a fraudulent inducement to enter a contractual relationship and a “per se” fraudulent operation of an “endless chain” selling scheme or a “pyramid” marketing plan in violation of Penal Code section 327 and Business and Professions Code section 17500.

As a proximate result of the unlawful scheme it is charged the Hands are saddled with lingerie—bras and girdles—costing $3,261.58 of which they cannot dispose. Similarly the Bounds assert they have an unsaleable inventory—bras, girdles, gowns and see-through swimsuits—costing $51,465.99. Figurettes refuses to take back the merchandise. Other consequential damages as well as punitive damages are sought. Figurettes denies these charges.

After a lengthy nonjury trial, the court…