The district court correctly found that the real property general partnership interests that defendant sold to the public were investment contracts and that defendant violated the Securities Act by selling those interests without complying with that act’s disclosure requirements. Defendant exercised almost total control over the partnerships, partly by means of making all the critical decisions between the time he received the partners’ money and the time he formed the partnerships and conveyed the partnership interests to them.
Ninth Circuit Court of Appeals (Smith, N.R., J.) September 26, 2018; 2018 U.S. App. LEXIS 27449