Curley v. United States

160 F.2d 229 (1947)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

There was an organized group, called Engineers' Group. Activities were carried on in the name of the Group, and the mails were used in furtherance of those activities. The Group booked contracts related to the procurement of government war work and housing construction and the furnishing of engineering and similar service in connection with that work. To get the contracts, representations were made in the name of the Group as to business controlled by it, its staff, its assets, and the existing status of various government projects. Money was received by the Group under agreements that it be held as deposits and returned if contemplated business projects did not materialize. The Group was represented as having within its control the designation of contractors on certain government housing projects and war work. It had none. It represented as having large amounts of cash in bank and extensive security holdings. It had no such amounts or holdings. Certain housing projects were represented as having been approved by the Federal Housing Administration. They had not been. Commitments on financing were represented as having been made by financial institutions on certain projects. No such commitments had been made. These false statements were made verbally, in letters, in contract agreements, and in a brochure widely distributed. As soon as the money came in, it was spent. The Group started in 1941 and was finished by 1942. About $67,000 had been received from customers and about $9,600 refunded to them. D was president of the Group from June 26, 1941, and of the corporation from its incorporation until his resignation about the middle of December 1941. D did not execute any contracts. He did not know of the brochure. He signed no letters. He did not participate in the negotiation of contracts with customers. He introduced several customers and verbally represented that the group had several jobs and several contracts and needed contractors. D also tried to set up a secured loan at a bank to show but not withdraw the money to the suckers who did business with them. D, Fuller, and Smith were indicted under federal mail-fraud statute and for conspiracy to commit fraud. D, Fuller, and Smith were indicted under federal mail-fraud statute and for conspiracy to commit fraud. D claimed that he had no knowledge of the other misrepresentations. But, it was shown at trial that D interfaced with clients and knew of the Group’s financial status. At the close of the prosecution’s case, D motioned for a directed verdict. It was denied. During his portion of the trial, D offered no evidence to rebut P’s case. The jury returned a verdict of guilty of conspiracy. D appealed.