Julian had been successful the previous year in drilling for oil in Santa Fe Springs, California.

Julian sold his interest in the company for $500,000 to Sheridan C. (S.C.) Lewis and Jacob Berman (alias Jack Bennett).

The company had created financial pools from 400 prominent local businessmen, including Cecil B. DeMille and Louis B. Mayer, to support the over-issuance of stock.

[2][3] S.C. Lewis, Jacob Berman and stockbroker Ed Rosenberg were acquitted in May 1928 on charges involving the Julian Pete fraud.

Buron Fitts, who was the lieutenant governor, resigned in 1928 and was elected Los Angeles County District Attorney and appointed prosecutor in the trial of Asa Keyes.

Flint was formerly a vice-president of the Pacific Southwest Trust and Savings Bank and had been indicted several times, but the charges were dismissed or he was acquitted.