Corey

Robert Francis Corey appeals from the judgment (order granting probation) entered following a jury trial which resulted in his conviction of selling an unqualified, unexempt security (Corp. Code, § 25110) and selling a security by means of false statements or omissions (Corp. Code, § 25401). Appellant contends that the trial court committed several instructional errors and erred- by excluding evidence regarding whether he intended to sell the security and whether he knew that the offering was fraudulent and that the promotional materials contained false and misleading statements. Based on the recent case of People v. Simon (1995) 9 Cal.4th 493 [ 37 Cal.Rptr.2d 278 , 886 P.2d 1271 ], disapproving People v. Johnson (1989) 213 Cal.App.3d 1369 [ 262 Cal.Rptr. 366 ], we reverse the conviction for violation of section 25401, remand for retrial and otherwise affirm.

Background

This case arises under the Corporate Securities Law of 1968 (§ 25000 et seq.) and was instituted in response to financial losses suffered by Diana Cole after paying money to purchase an interest in a “Michael Jackson Board Game” (Game), a purported investment opportunity offered by Panda Resources…