Pappalardo

Defendant and respondent Nick Pappalardo (respondent) was charged by plaintiff and appellant People (appellant) with seven counts of grand theft (Pen. Code, § 487, subd. 1), one count of attempted grand theft (Pen. Code, § 487, subd. 1), three counts of selling unregistered securities (Corp. Code, §§ 25110, 25540), three counts of securities fraud (Corp. Code, § 25541), and three counts of misrepresentation regarding the sale of securities (Corp. Code, §§ 25401, 25540).

Respondent moved for dismissal of the charges on the ground that he was entitled to immunity from prosecution pursuant to Corporations Code section 25531, subdivision (e) because he was compelled to give incriminating testimony at an examination before the Department of Corporations. The motion was initially denied. However, it was granted after respondent filed a motion for reconsideration.

Appellant contends: (1) the corporations department commissioner lacked legal authority to compel testimony and thereby activate the statutory immunity, without obtaining a court order; (2) the hearing officer did not compel respondent to testify; (3) count 17 is not transactionally related to the subject of the…