PEOPLE v. FREDERICK Part - I
Jury reasonably concluded that an endless chain scheme program offering members co-ownership interest in corporation in exchange for payments and for recruiting additional members amounted to illegal and fraudulent sale of securities. Members who bought into program testified that they believed they were investors and co-owners in corporation. These members, being poor, uneducated, and without power to influence corporation's management, relied on corporation's officers to manage their investments. The crime of filing false income tax returns is not part of a common scheme or plan to take property within meaning of Penal Code Sec. 12022.6(b), under which losses from common scheme may be aggregated for purposes of determining sentence enhancement.
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