United States v. Gilbert Traylor, Aka: Gil Traylor

This criminal prosecution by the United States, alleging violation of the Mail Fraud statute, 18 U.S.C. § 1341 , and a prior civil action brought jointly by the Commodity Futures Trading Commission and the State of California, alleging violations of the Commodity Exchange Act, 7 U.S.C. § 1 , et seq. and California Business and Professions Code §§ 17200 et seq. and 17500 et seq., both arise out of Appellant Traylor’s operation of a telemarketing “boiler-room,” which sold interests in precious metals to unsophisticated investors.

Traylor sought dismissal of the indictment arguing it was barred by the double jeopardy clause because fines payable to the State of California were imposed upon •Traylor by a federal district court for the same conduct in the earlier civil case. The district court in the present case denied the motion, ruling the fines did not constitute punishment and, in any event, the federal criminal prosecution was permissible because the fines in the earlier civil case were awarded only to the State of California for violation of a California statute. Traylor entered a conditional plea of guilty and now appeals the district court’s denial of the motion to dismiss.…