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Texas Investment Broker Fraud Case by ycj19432

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Texas Investment Broker Fraud Case document sample

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									                              CAUSE NO. «CAUSENO»



THE STATE OF TEXAS                    §   IN THE «COURTNO» DISTRICT COURT

VS.                                   §   OF HARRIS COUNTY, TEXAS

«DEFENDANT»                           §   «MONTH» TERM, A. D., «YEAR»



Members of the Jury:

      A   person    commits   the   offense    of    securities      fraud    if   in

connection with the sale, offering for sale or delivery of, the

purchase, offer to purchase, invitation of offers to purchase,

invitations of offers to sell, or dealing in any other manner in

any security or securities, whether or not the transaction or

security is exempt directly or indirectly:

      (1) engages in any fraud or fraudulent practice;

      (2) employs any device, scheme, or artifice to defraud;

      (3) knowingly makes any untrue statement of a material fact

            or omit to state a material fact necessary in order to

            make     the   statements     made,     in   the     light       of    the

            circumstances under which they are made, not misleading;

            or

      (4) engages in any act, practice or course of business which

            operates or will operate as a fraud or deceit upon any

            person.

      The term "security" or "securities" shall include any limited

partner interest in a limited partnership, share, stock, treasury

stock,     stock      certificate    under    a     voting     trust    agreement,
collateral         trust   certificate,      equipment       trust     certificate,
preorganization          certificate         or        receipt,      subscription         or

reorganization         certificate,        note,       bond,      debenture,      mortgage

certificate      or    other     evidence        of    indebtedness,        any   form    of

commercial paper, certificate in or under a profit sharing or

participation          agreement,          certificate         or     any      instrument

representing any interest in or under an oil, gas or mining

lease,     fee    or     title,       or     any       certificate     or      instrument

representing or secured by an interest in any or all of the

capital, property, assets, profits or earnings of any company,
investment contract, or any other instrument commonly known as a

security, whether similar to those herein referred to or not. The

term applies regardless of whether the "security" or "securities"

are evidenced by a written instrument. Provided, however, that

this     definition      shall    not       apply      to   any     insurance     policy,

endowment policy, annuity contract, optional annuity contract, or

any contract or agreement in relation to and in consequence of

any such policy          or contract, issued by an insurance company

subject to the supervision or control of the Texas Department of

Insurance when the form of such policy or contract has been duly
filed with the Department as required by law.

   The terms "sale" or "offer for sale" or "sell" shall include

every disposition, or attempt to dispose, of a security for

value.      The       term   "sale"     means         and   includes    contracts        and

agreements whereby securities are sold, traded or exchanged for

money, property or other things of value, or any transfer or

agreement to transfer, in trust or otherwise.                       Any security given
or delivered with or as a bonus on account of any purchase of

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securities    or   other    thing    of       value,    shall      be   conclusively

presumed to constitute a part of the subject of such purchase and

to have been sold for value.          The term "sell" means any act by

which a sale is made, and the term "sale" or "offer for sale"

shall include a subscription, an option for sale, a solicitation

of sale, an attempt to sell, or an offer to sell, directly or by

an agent or salesman, by a circular, letter, or advertisement or

otherwise, including the deposit in a United States Post Office

or mail box or in any manner in the United States mails within
this State of a letter, circular or other advertising matter.

   The term "fraud" or "fraudulent practice" shall include any

misrepresentations,    in    any     manner,      of    a    relevant     fact;   any

promise or representation or prediction as to the future not made

honestly and in good faith, or an intentional failure to disclose

a material fact.      An omitted fact is "material" if there is a

substantial    likelihood     that     it       would       have   assumed    actual

significance in the deliberations of a reasonable investor, in

that it would have been viewed by the reasonable investor as

significantly altering the total mix of available information
used in deciding whether to invest.

   A person acts intentionally, or with intent, with respect to

the nature of his conduct or to a result of his conduct when it

is his conscious objective or desire to engage in the conduct or

cause the result.

   A person acts knowingly, or with knowledge, with respect to

the nature of his conduct or to circumstances surrounding his
conduct when he is aware of the nature of his conduct or that the

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circumstances exist.             A person acts knowingly, or with knowledge,

with respect to a result of his conduct when he is aware that his

conduct is reasonably certain to cause the result.

     Now, if you find from the evidence beyond a reasonable doubt

that   in   Harris      County,        Texas,        on        or   about    the      «DATE»,      the

defendant, «DEFENDANT1», did then and there unlawfully, offer for

sale   and/or     sell       a    security          and/or          securities,       namely,       an

interest    in    Cyndi      Lane      Investments             L.L.C.,      and/or       investment

contract, and/or Collateralized Mortgage Obligation (CMO) bonds
and/or certificates, and/or evidence of indebtedness promising to

pay $10,000 per month in profits for 10 months and $5,000 per

month thereafter, in Harris County, Texas to (NAMES) in an amount

of one hundred thousand dollars, and that (NAME) engaged in fraud

in   connection       with       the   offer        for        sale   and/or      sale       of   said

security and/or securities by:

(1) knowingly and/or intentionally misrepresenting to (NAMES), that (NAME) was

     a licensed securities broker at the time of said offer for sale and/or

     sale, and said misrepresentation was a relevant fact; and/or

(2) knowingly and/or intentionally misrepresenting that the investment funds

     provided by (NAMES) would be held in escrow and/or in trust until a

     certain Limited Liability Company named Cyndi Lane Investments L.L.C. was

     established, and said misrepresentation was a relevant fact; and/or

(3) knowingly and/or intentionally misrepresenting that the invested funds

     belonging   to   (NAMES)     would    be   used      as    down-payment     on   real    property

     purchased   by   the    Limited      Liability       Company     to    be   named   Cyndi    Lane

     Investments L.L.C. for use as collateral for a loan to purchase CMO

     bonds, and said misrepresentation was a relevant fact; and/or


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(4) intentionally failing to disclose that (NAME) and/or Windward Investment

    Corporation a.k.a. Windward investments, L.L.C. was not, at the time of

    said offer for sale and/or sale, licensed to offer for sale and/or sell

    securities in the State of Texas, and said fact was material; and/or

(5) intentionally failing to disclose that (NAME) on April 21, 1997 in Cause

    No. 153629-B, in the case styled State of Texas vs. Government Securities

    Corp.,   successor   in   interest   to       Government   Securities   Corporation    of

    Texas, et al, in the 146th District Court of Bell County, Texas, was

    found to have engaged in fraud and fraudulent practices as defined in

    Section 4.F of the Securities Act of Texas, and said fact was material.

then   you   will   find      the   defendant          guilty     as   charged    in      the

indictment.

    Unless you so find from the evidence beyond a reasonable

doubt, or if you have a reasonable doubt thereof, you will acquit

the defendant and say by your verdict "Not Guilty."




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   A defendant in a criminal case is not bound by law to testify

in his own behalf therein and the failure of any defendant to so

testify shall not be taken as a circumstance against him nor

shall the same be alluded to nor commented upon by the jury, and

you must not refer to, mention, comment upon or discuss the

failure of the defendant to testify in this case.                  If any juror

starts to mention the defendant's failure to testify in this case

then it is the duty of the other jurors to stop him at once.

   A Grand Jury indictment is the means whereby a defendant is
brought to trial in a felony prosecution.                It is not evidence of

guilt    nor   can   it   be   considered   by    you    in   passing   upon   the

question of guilt of the defendant.              The burden of proof in all

criminal cases rests upon the State throughout the trial and

never shifts to the defendant.

   All persons are presumed to be innocent and no person may be

convicted of an offense unless each element of the offense is

proved beyond a reasonable doubt.                The fact that he has been

arrested, confined, or indicted for, or otherwise charged with

the offense gives rise to no inference of guilt at his trial.
The law does not require a defendant to prove his innocence or

produce any evidence at all.           The presumption of innocence alone

is sufficient to acquit the defendant, unless the jurors are

satisfied beyond a reasonable doubt of the defendant's guilt

after careful and impartial consideration of all the evidence in

the case.

   The    prosecution      has   the   burden    of     proving   the   defendant
guilty and it must do so by proving each and every element of the

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offense charged beyond a reasonable doubt and if it fails to do

so, you must acquit the defendant.

     It is not required that the prosecution prove guilt beyond

all possible doubt; it is required that the prosecution's proof

excludes all reasonable doubt concerning the defendant's guilt.

     In    the    event       you    have   a     reasonable        doubt      as     to   the

defendant's guilt after considering all the evidence before you,

and these instructions, you will acquit him and say by your

verdict "Not Guilty."
     You are the exclusive judges of the facts proved, of the

credibility of the witnesses and the weight to be given their

testimony,       but    the    law    you   shall      receive      in   these        written

instructions, and you must be governed thereby.

     After you retire to the jury room, you should select one of

your members as your Foreman.                It is his or her duty to preside

at   your     deliberations,         and    vote      with   you.        When       you    have

unanimously agreed upon a verdict, each of you will certify to

your verdict by signing the appropriate form attached hereto.

     During      your     deliberations          in   this    case,      you        must    not
consider, discuss, nor relate any matters not in evidence before

you.      You should not consider nor mention any personal knowledge

or information you may have about any fact or person connected

with this case which is not shown by the evidence.

     No one has any authority to communicate with you except the

officer who has you in charge.                   After you have retired, you may

communicate with this Court in writing through this officer.                                Any
communication relative to the cause must be written, prepared and

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signed by the Foreman and shall be submitted to the court through

this officer.       Do not attempt to talk to the officer who has you

in   charge,   or    the    attorneys,       or   the   Court,   or     anyone   else

concerning any questions you may have.

     Your sole duty at this time is to determine the guilt or

innocence of the defendant under the indictment in this cause and

restrict your deliberations solely to the issue of guilt or

innocence of the defendant.

     Following   the       arguments   of     counsel,    you    will    retire    to
consider your verdict.




                                       «JUDGE», Judge Presiding
                                       «COURTNO1» District Court
                                       Harris County, TEXAS




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                       CAUSE NO.       «CAUSENO»



THE STATE OF TEXAS             §       IN THE «COURTNO» DISTRICT COURT

VS.                            §       OF HARRIS COUNTY, TEXAS

«DEFENDANT»                    §       «MONTH» TERM, A. D., «YEAR»



                           V E R D I C T



      "We, the Jury, find the defendant, «DEFENDANT1», guilty of

«OFFENSE», as charged in the indictment."




                          Foreman of the Jury



                          Juror



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                        CAUSE NO.        «CAUSENO»



THE STATE OF TEXAS              §        IN THE «COURTNO» DISTRICT COURT

VS.                             §        OF HARRIS COUNTY, TEXAS

«DEFENDANT»                     §        «MONTH» TERM, A. D., «YEAR»



                            V E R D I C T



      "We, the Jury, find the defendant, «DEFENDANT1», not guilty."




                            Foreman of the Jury



                            Juror



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