Venezia v. Sunrise View, Inc.
Docket: No. 4D11-83
Court: District Court of Appeal of Florida; May 16, 2012; Florida; State Appellate Court
Joseph Venezia and Vincent Gerardi, the appellants, appeal a final summary judgment favoring Sunrise View, Inc., which claimed a violation of Florida’s Securities and Investor Protection Act due to the alleged sale of an unregistered security. Under section 517.07(1) of the Florida Statutes, selling or offering to sell a security in Florida is prohibited unless it meets certain exemptions or is properly registered. The court reversed the summary judgment, stating that genuine issues of material fact remain. Sunrise View's motion, the only evidence provided for the summary judgment, described an investment opportunity where they would invest $300,000 with the expectation of receiving $3 million in thirty days, with the appellants retaining a portion of that amount over time. After wiring the money, Sunrise View did not receive any returns or the original investment. The appellants later indicated that the funds were used in an investment scheme involving a foreign-currency trader, but they did not disclose detailed information regarding the investment. The court noted that whether an investment qualifies as a security depends on the specific facts of each case. The statutory definition of "security" is broad, encompassing various forms of investment contracts and agreements. The limited evidence presented did not conclusively establish that a "sale" occurred as defined by the statute. Consequently, the court concluded that there are unresolved material facts regarding the nature of the transaction and whether it involved a "security." The case was reversed and remanded for further proceedings. Judges Warner and Conner concurred with the decision.