People v. Oehler

Opinion

BROWN (Gerald), P. J.

William A. Oehler appeals from a probation order, deemed a final judgment, based on his jury-tried conviction on two counts of grand theft.

The grand jury indicted Oehler on three counts of grand theft (Pen.

[687]

Code, § 487), one count of forgery (Pen. Code, § 470), and eight counts of violating the Corporate Securities Law (Corp. Code, § 26104, subd. (a)). During Oehler’s jury trial the court directed verdicts of acquittal on one of the grand theft counts and on the forgery count. The court also found Oehler not guilty on one of the corporate securities violation charges. The jury acquitted Oehler on all other charges except the two remaining grand theft counts.

Oehler promoted an oil exploration venture in an oil field near Bakersfield. He formed a group of investors which he described as a joint venture. He sold interests in the oil venture to members of this group. The sale of these interests gave rise to the charges Oehler violated the California Corporate Securities Law of which he was acquitted.

Oehler’s group entered into a turnkey contract with Kernco Drilling Company calling for an oil well to be drilled to 1,850 feet. At 1,850 feet the well was still dry. The members of the investment group agreed the well should be drilled to a greater depth. Kernco drilled the well to a depth of 2,010 feet. It charged $1,750 for the additional drilling.

The president of Kernco Drilling Compay sent Oehler an invoice for the unpaid $1,750 on May 16, 1966. Two years later, it remained unpaid so Kernco sued Oehler for it and took judgment by default.

In 1966, about the time the additional drilling was completed, Oehler solicited funds from the investment group to pay for the additional drilling. Dr. Sanderson wrote a check in the sum of $320 for his share of the addi-. tional cost and gave it to Oehler. Dr. Doud delivered to Oehler his $220 check to pay for Dr. Doud’s share of the added drilling costs. There was evidence Oehler converted the proceeds of the Doud and Sanderson checks to his own use. These two checks are the basis of Oehler’s grand theft conviction.

The trial court instructed the jury the Corporate Securities Law does not apply to a good faith joint venture agreement. Before acquitting Oehler of the Corporate Securities Law violation, the jury requested further instructions on what constitutes a good faith joint venture. The trial court did not instruct the jury as to what effect a valid joint venture between Oehler and Doctors Sanderson and Doud would have on the two remaining theft counts.