Frederick

Here the crime, an endless chain, proves to be an oxymoron. (Pen. Code, § 327.) The conviction of defendants ends the chain, but not the losses to countless victims.

Among other things, we conclude the elaborate chain scheme devised by defendants to bilk money from various hapless victims also involves securities fraud. We also conclude that the crime of filing a false income tax return does not involve a “taking” for the purpose of sentence enhancement.

Joan Frederick, Mercedes Navarrete, and Felix Navarrete appeal a judgment following conviction of operating an endless chain scheme; conspiracy to commit grand theft; grand theft; sale of a security without qualification (Mercedes and Felix); using a false statement in the sale of a security (Felix); using a scheme to defraud in the sale of a security (Mercedes and Felix); and filing a false income tax return (Mercedes and Felix). (§§ 327, 182, subd. (a)(1), 487, subd. (a), 186.11, subd. (a)(2) [excessive taking in pattern of related felony conduct], & 12022.6, subd. (a)(4) [excessive taking]; Corp. Code, §§ 25110, 25540, subds. (a) & (b), 25401, & 25541; Rev. & Tax. Code, § 19705, subd. (a)(1).) We strike the section…