Vicioso

MEMORANDUM OPINION

Evidence in this case was presented before this Court sitting without a jury. Jurisdiction is found in the Securities Act of 1933, 15 U.S.C. § 77v(a).

The plaintiffs are doctors with successful practices in the Los Angeles area. In the fall of 1967 they were looking for tax shelter opportunities in which to invest some of their income. About this time, a Mr. Wofford from Wichita, Kansas came to Los Angeles to sell fractional interests in oil drilling ventures in his home state and plaintiffs attended a meeting held by Wofford at the International Hotel to which he invited a number of potential investors and made a presentation of his proposition. Impressed by Wofford’s plan, the doctors requested Emanuel Kaleidas, their accountant, to check on Wofford’s credentials. Kaleidas had frequently put together real estate and other investment deals for a group of doctors including plaintiffs in return for a commission and he had some experience in oil and gas leases and oil drilling. The plaintiffs seemed particularly attracted by Wofford’s plan to sell shares in four oil leases rather than in a single one and his assurance that he would guarantee at least one…