Llanos

This is a criminal appeal from a judgment of conviction by the United States District Court for the District of Hawaii. Trial was before the court without a jury.

Appellants raise three questions by this appeal: (1) whether the instruments involved were “securities” within the meaning of the Securities Act of 1933; (2) whether appellants were engaged in the “sale” of securities within the meaning of that Act; and (3) whether the trial court erred in receiving in evidence certain exhibits. A fourth question, concerning the validity of the indictment, was waived on oral argument.

Appellants were convicted on 12 or 13 counts of violating Section 17(a) (1) of the Securities Act of 1933, 15 U.S.C.A. § 77a et seq., hereafter the Act; on 5 of 6 counts of mail fraud, 18 U.S.C. § 1341 ; and on one count of conspiring to commit the foregoing crimes, 18 U.S.C. § 371 . The indictment alleged a scheme whereby the appellants would obtain money for their own use by making various false representations. Among these representations were the following: That the money would be bet on a “fixed” volleyball game; that a company that they represented had over $6,500,000 in the bank; and that certain…