Wednesday, December 09, 2009

People v. O'Neal (Cal. Ct. App. - Dec. 9, 2009)

Low level scams seem so boring nowadays. Or even low-level "investments," like the ones here, where you're getting five figures from people in your church to market a dubious product on the basis of exceptionally dubious representations.

Nonetheless, I mention this case for two reasons. First, I love the way Justice Croskey describes the product, for which defendant solicited "investors" so he could "market" it. "LadyCare is an alternative medical device, designed to reduce menstrual cramps and discomfort. Less charitably described, it is a magnet intended to be worn inside the underwear." Classic.

Second, unlike, say, the Madoff scheme, this one was hardly sophisticated. Here's how Justice Croskey describes the offering memorandum: "Cole, without the assistance of counsel, drafted a PIA to be executed by individuals investing in the LadyCare business. The document is largely unintelligible, but purports to be an agreement between Cole (as principal) and the investor." I loved the "largely unintelligible" part. Classic Part II.