Amado

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

I. INTRODUCTION

Defendants’ motion, much like the case, turns on a key question: were plaintiffs’ membership investments in the White Sands Estates (“WSE”) securities subject to the Securities Act of 1933? Defendants Ed Broda, Aspire Real Estate (“Aspire”), and Pacific West Securities (“PWS”) argue the undisputed facts demonstrate that they were not. Even assuming the investments were securities, moving defendants insist they were not statutory sellers. Finally, defendants argue the securities would have been exempt from the Act’s registration requirement. For this reason, defendants ask for summary judgment on all claims that assume a violation of the Securities Act. In opposition, plaintiffs demonstrate that material issues of fact remain in dispute, thereby foreclosing summary judgment under any of defendants’ three legal theories. Because plaintiffs have introduced no facts, in contrast, to dispute defendants’ argument of a lack of connection to the O’Shea Trust or Tom O’Shea, their motion for summary judgment on claims brought by these plaintiffs must be granted.

In the alternative,…