New York v. Luongo , 58 A.D.2d 895 (1977)

Can the promoter of a pyramid scheme be convicted of larceny by false pretenses if some of the investments made by the promoter were legitimate?


The New York Appellate Division concluded that all of the promoter's promises need not be false to be convicted of larceny by false pretenses. The promoter made some investments in legitimate enterprises, but he also made others in shell companies that existed in name only. He argued that he was simply the victim of bad investments. The Court held that the bad investments argument was without merit, and the evidence showed that the promoter himself even considered that the program a pyramid scheme.

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Reference Info:State, 2nd Circuit, New York | United States

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