Illinois v. Knop , 199 Ill. App.3d 944 (1990)

Illinois v. Knop

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The Appellate Court ruled that the founder could not rely on the opinion of the lower court declaring a similar scheme to be legal. Knop founded a pyramid sales program based on the operations of Unimax. In a different ruling, a state circuit court had found that Unimax was not a pyramid scheme. However, that ruling was overturned on appeal. In Knops case, he claimed that he could not be prosecuted under the state's pyramid statute because he had relied upon a "public officer's" interpretation of the statute. The Appellate Court disagreed, saying that to consider a circuit court judge to be a public officer within the meaning of the statute would render its language conflicting. Knops reliance was misplaced, especially since the case on which he relied was overturned on appeal. He could be properly tried under the state's pyramid statute.

Full case and case summary is also available at: http://www.mlmlegal.com/legal-cases/Illinois_v_Knop.php

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

Reference Info:State, 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.

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