Towne

This is an action to recover the amount paid for the purchase of stock of a nonexistent corporation. The complaint contained seven causes of action: (1) rescission, or damages, on the ground of fraud, (2) violation of the Corporate Securities Law, (3) breach of contract, (4) money had and received; and three causes of action on promissory notes. In a nonjury trial, judgment was for defendant. Plaintiff appeals from the judgment.

Appellant contends that the findings are not supported by the evidence.

About June 7, 1958, plaintiff was introduced to defendant in Burbank, California, by the president of a savings and loan association there. Shortly after the introduction, defendant stated to plaintiff, in Burbank, that: a friend, whom he had known for many years, owned controlling interest in a corporation which was located in the eastern part of the United States; the corporation had developed a defense weapon which would make war against the United States impossible; it had a contract with the United States government, which contract was the largest ever made by the government; it had built factories throughout the entire country to manufacture the weapon; the friend owned stock…