Hannelore Baumer v. James P. Pachl and Gordon L. Yow

The matter before the Court concerns the interpretation and application of §§ 1962(c), (d) of the Racketeer Influenced and Corrupt Organizations (RICO) chapter of the Organized Crime Control Act of 1970, Pub.L. 91-452, Title IX, 84 Stat. 941 , as amended, 18 U.S.C. §§ 1961-1968 (1988 ed. and Supp. II). Plaintiffs/appellants are some of approximately eighty investors in a California limited partnership known as “Golden Hills Estates” (“Golden Hills”) formed by non-defendants Emery Erdy and a California corporation, Estate Planning Associates, Inc. (EPA). The complaint alleges that in November 1976 Erdy and EPA commenced public sales of fractional partnership interests in “Klamath Country Reserve.” In April 1981 Erdy and EPA began public sales of limited partnership interests in Golden Hills, allegedly in an effort to make payment to the Klamath plaintiffs and others. In 1982, the California Department of Corporations commenced an investigation into the sales by Erdy and EPA of limited partnership interests in Golden Hills. The Commission concluded that the transactions constituted illegal sales of unregistered securities and demanded that no further sales be undertaken.

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