US v. Herr, 338 F.2d 607 (1964)

Does acquittal of conspiracy require the dismissal of charges alleging the violation of federal securities laws?


The Court of Appeals held that criminal convictions need not be consistent with each other, and that each count of an indictment is a separate charge. The defendants were convicted of selling securities in violation of US securities law. Their company recruited investors to fund the sales of motivational materials. The company was structured to only make money through the continued recruitment of investors, and not through the sale of the motivational materials. They argued that because they were acquitted of the conspiracy charges, they securities charges must be dismissed. The court said that its conclusion was so well documented that it need not cite to the voluminous authority on the topic.

Full case and case summary also available online at:

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

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

Reference Info:Federal, 7th Circuit, Illinois | 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