UNITED STATES of America, Plaintiff-Appellee, v. Louis M. MAYO, Jr., and James Harold Dondich, Defendants-Appellants

Appellants Louis M. Mayo and James Harold Dondich appeal from their convictions for mail fraud and securities fraud, in violation of 18 U.S.C. §§ 371 , 2314, 1341, 1343 and 15 U.S.C. §§ 77q(a), 77x, 78j(b), 78ff(a). We affirm.

I

FACTS

Appellants Mayo and Dondich were found guilty on all counts of an 18-count indictment. Three co-defendants, Mortensen, Osness, and Jackson, were acquitted on all counts. To sum up a long and complex factual record, the appellants were involved in a scheme to market debt securities of Quimby Island Reclamation District No. 2090 (the District) at a time when it was losing money and probably had a negative net worth. In promotional material used to sell the securities, the District’s assets were represented to have a value in excess of $100 million. Listed as part of the assets, at a value of $95 million, was a ranch in Colombia which appellant Dondich had deeded to the District in return for $5 million of general obligation bond anticipation notes (gobans). Dondich had no interest in the ranch which he could convey. Mayo and Dondich were both aware of these facts. In the course of their dealings, the appellants knowingly made false representations…