McLish

MEMORANDUM OPINION

Plaintiff seeks recovery on three causes of action:

A. A violation of the Federal Securities Act, specifically, 15 U.S.C. § 77 (e).

B. Violation of the California Corporate Securities Act, specifically, Sections 25000, et seq., of the California Corporation Code.

C. Common law conversion.

Jurisdiction is conferred on the Court by virtue of 15 U.S.C. § 77v, as to the alleged violation of the Federal statutes and the state causes of action by virtue of diversity of citizenship which was properly alleged and conceded by the defendant. Venue is proper inasmuch as the defendant is a resident of the Eastern District of California.

FACTS

The defendant, in addition to other interests, operated a cattle feed lot near Coalinga, Fresno County, California. Briefly, the defendant fed and processed three categories of cattle at this installation, i. e., cattle wholly owned by the defendant corporation or its majority stockholder, Mr. Jaek Harris (hereinafter called “owned cattle”); cattle owned by Harris Farming Company or its principal owners and others (hereinafter called “joint venture cattle”). Consideration of these cattle are pertinent only insofar as they…