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.

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