United States v. Leverage Funding Systems, Inc.

637 F.2d 645 UNITED STATES of America, Plaintiff-Appellant, v. LEVERAGE FUNDING SYSTEMS, INC., a corporation, Centaur Films, a corporation, Peter S. Traynor, an individual, William G. McDonald, Jr., an individual, Defendants-Appellees. No. 79-1677. United States Court of Appeals, Ninth Circuit. Argued and Submitted May 7, 1980. Decided Oct. 3, 1980. Theodore W. Wu, Asst. U. S. Atty., Los Angeles, Cal., for plaintiff-appellant. Richard H. Kirschner, Los Angeles, Cal., for defendants-appellees. Appeal from the United States District Court for the Central District of California. Before FARRIS and NELSON, Circuit Judges, and JAMESON, * District Judge. FARRIS, Circuit Judge: 1 The United States appeals the district court's dismissal of a 29-count indictment against Leverage Funding Systems, Centaur Films, Peter Traynor and William McDonald for mail fraud and fraud in the offer and sale of securities. The government contends that the district court erred in ruling that the indictment must be dismissed because fewer than twelve of the grand jurors returning the indictment attended every grand jury session. We reverse. 2 On February 27, 1979, the defendants were indicted by a federal…