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Lustiger v. United States
United States Court of Appeals for the Ninth Circuit
386 F.2d 132 (1967)
Lustiger (defendant) formed a company that bought or acquired options to buy land and then subdivided the land and offered the subdivisions for sale to the public. The land, called Lake Mead City, was advertised in newspapers and other publications. Anyone who responded to the advertisements received an investor’s kit and a brochure. The brochure contained statements about the advantages of Lake Mead City and photographs that appeared to depict water scenes in the area. In fact, water was not readily available to Lake Mead City residents for recreational and domestic uses. Purchasers were expected to rely on the brochures in purchasing property. Only a few purchasers actually visited before buying. Lustiger was charged with and convicted of mail fraud based on the misleading representations contained in the brochure. Lustiger appealed, arguing that the district court’s finding that the representations made in the advertising materials were misleading, deceptive, and false was not supported by sufficient evidence.
Rule of Law
Holding and Reasoning (Hamley, J.)
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