Fed. Sec. L. Rep. P 99,071, 96 Cal. Daily Op. Serv. 1419, 96 Daily Journal D.A.R. 2427 Shaun Webster and Robert Ligon v. Omnitrition International, Inc. Jim Fobair Roger Daley Charles Ragus and Jerry Rubin, Shaun Webster and Robert Ligon v. Douglas Adkins and Gardere & Wynne

79 F.3d 776 Fed. Sec. L. Rep. P 99,071, 96 Cal. Daily Op. Serv. 1419 , 96 Daily Journal D.A.R. 2427 Shaun WEBSTER and Robert Ligon, Plaintiffs-Appellants, v. OMNITRITION INTERNATIONAL, INC.; Jim Fobair; Roger Daley; Charles Ragus; and Jerry Rubin, Defendants-Appellees. Shaun WEBSTER and Robert Ligon, Plaintiffs-Appellants, v. Douglas ADKINS; and Gardere & Wynne, Defendants-Appellees. Nos. 94-16477, 94-16478. United States Court of Appeals, Ninth Circuit. Argued and Submitted Sept. 12, 1995. Decided March 4, 1996. Richard M. Heimann and Karen E. Karpen, Lieff, Cabraser & Heimann, San Francisco, California, for plaintiffs-appellants. William Christopher Carmody, Dallas, Texas; Robert T. Sullwold, Orrick, Herrington & Sutcliffe, San Francisco, California; Edward King, San Francisco, California, for defendants-appellees. Appeal from the United States District Court for the Northern District of California; Saundra B. Armstrong, District Judge, Presiding. Before CHOY, BEEZER and DAVID R. THOMPSON, Circuit Judges. BEEZER, Circuit Judge: 1 We consider what constitutes an inherently fraudulent pyramid scheme for purposes of several federal antifraud statutes. 2 Shaun Webster…