Gerald hocking visited hawaii and became interested in


Gerald Hocking visited Hawaii and became interested in buying a condominium there as an investment. Maylee Dubois, who was a licensed real estate broker in Hawaii and an employee of Vitousik Realtors Inc. agreed to help Hocking find a suitable unit. Dubois found a condominium unit owned by Tovik Liberman that was for sale. The unit was located in a resort complex developed by Aetna Life Insurance Co. and managed by Hotel Corporation of Hawaii. Aetna and Hotel Corporation offered purchasers of condominiums in the resort the opportunity to participate in a rental pool agreement. Under the agreement, the net rental income from all the participating condominiums would be collected in one account during the course of the year and then divided among the condominium owners based upon their ownership interest. Hocking entered the arrangement, but was disappointed by the return on his investment. He sued Aetna and Hotel Corporation claiming that his ownership interest was a security and he should have received a prospectus prior to the sale of the interest. Is his ownership interest a security under the Howey Test? Explain.

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