Fed. Sec. L. Rep. P 92,654 United States of America v. Robert W. Livengood, United States of America v. Donald D. Etherton

Producers Livestock and Loan Company, Inc. was ordered into receivership on January 7, 1966, shortly after defaulting in the redemption of the first series of its “8% Callable Debentures.” It had been incorporated approximately five years before and, during its relatively short business life, had raised $735,000 by public sale of these “Debentures”— essentially unsecured promissory notes.

The prosecution which gives rise to these appeals was commenced May 18, 1967. On that date an 18 count indictment was returned and filed in the United States District Court against Donald D. Etherton and Robert W. Livengood, two of Producers’ officers and directors. They had publicly sold Debentures in respective amounts of $335,100 and $296,-900. The indictment charged them jointly with fraud in the sale of securities (15 U.S.C. § 77q(a); mail fraud (18 U. S.C. § 1341), conspiracy ( 18 U.S.C. § 371 ) and making false statements ( 18 U.S.C. § 1001 ). Some counts were dismissed as to one or both defendants before the case went to the jury and, on others, they were acquitted; however, both defendants were found guilty on Counts 11, 12 and 15 (mail fraud) and Etherton was additionally found guilty…