Ponti

Plaintiffs Joseph V. Ponti and F. L. Freeman brought this action against defendants David Farrell and Los Angeles Trust Deed and Mortgage Exchange, called Exchange. The complaint was in two counts. Count I was for damages for violation of the Corporate Securities Act. The court found against plaintiffs on that issue. Count II alleged ‘1 [w] ithin four ¿years last past and prior to the commencement of the above entitled action the defendants became indebted to the plaintiffs, and each of them, upon a written instrument in the sum of $5,000.00 for money had and received by the defendants for the use of plaintiffs”; and although demand had been made, no part thereof had been paid. The court found for plaintiffs on count II. Since plaintiffs have not appealed, we are not concerned with count I.

The pertinent findings with respect to count II are these: During March 1956 Farrell, acting on behalf of himself and for and on behalf of Exchange, requested each plaintiff to invest $5,000 in a uranium venture over which Farrell and Exchange had control; both plaintiffs had dealings with Farrell and Exchange prior to March 1956 and had developed confidence in each of said defendants’…