Justia Securities Law Opinion Summaries

The case involves David Moeller, who was convicted of securities fraud after deceiving an acquaintance into investing $9,500 in a non-existent business. Moeller appealed his conviction, but died during the appeal process. The Court of Appeals, applying the precedent set in State v. Hollister, ruled that Moeller's death did not render his appeal moot and affirmed his conviction and sentence. Moeller's defense counsel petitioned for review, arguing that the court should overrule Hollister and that the panel erred in concluding his conviction was supported by sufficient evidence.The Supreme Court of the State of Kansas affirmed the judgment of the Court of Appeals and the district court. The court held that under the doctrine of stare decisis, it would continue to adhere to Hollister, which establishes that the death of a criminal defendant during the appeal of his or her conviction does not automatically abate the appeal but may render some issues moot. The court found that Hollister was not originally erroneous and that more good than harm would come from adhering to it. The court also held that the State presented sufficient evidence to support Moeller's conviction for securities fraud. The court concluded that Moeller's conduct constituted fraud or deceit and that the transaction between Moeller and the victim involved the sale of a security in the form of an investment contract. View "State v. Moeller" on Justia Law

The Supreme Court reversed the decision of the court of appeals reversing Defendant's conviction for felony fleeing or attempting to elude a police officer, holding that the court of appeals misapplied the standard required to determine when an instructional error necessitates reversal and that that the district court's failure to give a lesser included offense instruction for the misdemeanor offense was not clearly erroneous.The court of appeals found that the district court erred by failing to give an unrequested jury instruction on a lesser included misdemeanor offense and that reversal was required because the jury could have reasonably reached a different verdict on the felony charge. The Supreme Court reversed, holding (1) the court of appeals erred by using a lower standard of doubt about the outcome to declare the unpreserved error reversible; and (2) the unpreserved error in the jury instructions was not clearly erroneous. View "State v. Berkstresser " on Justia Law

The Supreme Court reversed the decision of the court of appeals reversing the judgment of the district court in this action alleging that Defendants sold or offered to sell unregistered securities and committed fraud in selling or offering to sell securities, holding that Kansas courts did not have jurisdiction to prosecute the criminal charges in this case.Defendants David Lundberg and Michael Elzufon were Minnesota residents who sold as principals for Kansas limited liability corporations what the State alleged to be securities by using intermediaries who resided in California. The California intermediaries, in turn, made sales presentations in California and sold the securities from California to individuals who were not Kansas residents. The district court dismissed the counts against Defendants related to the sales involving the California intermediaries. The court of appeals reversed, holding that the sales originated in Kansas and thus Kansas had territorial jurisdiction. The Supreme Court reversed, holding that the Kansas Uniform Securities Act, Kan. Stat. Ann. 17-21a101 et seq., did not allow Kansas courts to exercise jurisdiction over Defendants because neither an offer to sell nor a sale of securities occurred in Kansas. View "State v. Lundberg" on Justia Law