People v. Adkisson CA1/5

I. BACKGROUND

John Stewart managed an investment fund known as Cornerstone Income Fund. After soliciting money from several individuals, he invested the proceeds into defendant’s business, Pro-Action Concepts, which purportedly was developing medically based fitness centers throughout the country. When the investors were advised their money had been lost, the matter became the subject of a criminal investigation and the

1 Napa County District Attorney filed a complaint charging defendant and Stewart with multiple felony counts. On May 17, 2011, defendant entered a no contest plea to grand theft (Pen. Code, § 487, subd. (a)), making a misleading statement in the offer or sale of a security (Corp. Code, § 25401), theft from an elder (Pen. Code, § 368, subd. (d)), offer or sale of an unregistered security (Corp. Code, § 25110), and operation of a scheme or artifice in the sale of a security (Corp. Code, § 25541). He admitted the amount of the loss in connection with two of the counts exceeded $500,000. (Pen. Code, § 186.11, subd. (a)(2).) Under the terms of the plea agreement, the court would impose an aggregate term of 13 years, four months in prison, but suspend execution of that…