Lelles

Lelles v. United States

Good Law
120 F.2d 447·1941 U.S. App. LEXIS 3489
United States Court of Appeals for the Ninth CircuitJune 7, 1941No. 9571California737 words

Opinion

Lead Opinion

Healy, J.

In an indictment containing eight counts appellant was charged with the offense of using the mails to defraud. 18 U.S.C.A. § 338 . He was found guilty on all except count seven, which was dismissed by the court.

*448 The first count outlined at length the details of the fraudulent scheme devised by appellant. It involved the conduct of a business called the Washington Mushroom Industries, an unincorporated company which appellant owned. The business was started in the year 1937. It consisted in the sale of mushroom growing outfits, including spawn, and a fertilizer called “Am-co” prepared by appellant for mushroom culture. Appellant advertised extensively and succeeded in making gross sales of his product in amounts ranging to several thousand dollars a month.

Some of the statements made by appellant in his literature were that the Washington Mushroom Industries was organized in 1931, and that its business had been steadily expanding every year since; that his was the largest business of its kind in the world, and that mushrooms were and would be easily grown in all parts of.the United States by the use of appellant’s spawn and Amco fertilizer; that no expensive or special…

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