Raymond Lee Organization, Inc. v. Division of Securities (1976)

Are the inventors who submit their inventions and Raymond Lee engaged in a "common enterprise?"


Raymond Lee Organization, Inc. charged independent investors to bring inventions to market. Inventors could submit their inventions to Raymond Lee Organization, and in exchange for both a fee and a percentage interest in the invention, Raymond Lee Organization would perform patent research, develop the product, prepare a patent application, sales letter and prospectus, negotiate with manufacturers and market the invention. The Colorado Securities Commissioner determined Raymond Lee Organization was selling investment contracts, and therefore unregistered securities, because the Raymond Lee Organization was a common enterprise in which a person invests money and expects a return based upon the efforts of another. The Commissioner issued a cease and desist order for selling unlicensed securities, and Raymond Lee Organization challenged the order.

Case summary is also available online at: http://www.mlmlegal.com/legal-cases/RaymondLeeOrganizationInc_v_DivisionofSecurities-1976.php

LOADING PDF: If there are any problems, click here to download the file.

Published In: MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates, Securities Updates

Reference Info: | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Babener & Associates | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »


Welcome to MLM Legal - a valuable resource to the Multi-Level Marketing and Direct Sales Industry. ... View Profile »

Follow Babener & Associates:

Reporters on Deadline