United States v. Lowell F. Johnson, United States of America v. Joe S. Agers, United States of America v. W. Shelley Richey

Johnson, Agers, and Richey appeal from their convictions for mail fraud in violation of 18 U.S.C. § 1341 . We reverse and remand.

I. Statement of the Case

On September 8, 1977, a federal grand jury indicted appellants Johnson, Agers, and Richey, and two others, for mail fraud. Each appellant pleaded not guilty. At trial the Government sought to prove that the men had been involved in an elaborate land sale fraud involving Thunderbird Valley corporation, of which appellants were major stockholders, and other corporations controlled by one or more of the appellants. The Government maintained that Thunderbird Valley, through another corporation controlled by one of appellants, assigned spurious mortgages to third parties. It also used the same lots as security on two or more instruments without telling the creditors of other claims against the lots. At the same time, Thunderbird Valley itself paid assignees on some mortgages that were either spurious or upon which the mortgagor had defaulted, in order to encourage confidence in Thunderbird Valley operations. The Government also sought to show other similar fraudulent activities.

A jury found appellants guilty of all 24 counts of…