United States v. Clay

37 F.3d 338 (1994)

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United States v. Clay

United States Court of Appeals for the Seventh Circuit
37 F.3d 338 (1994)

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Facts

Jim Clay (defendant) was convicted of a substantive drug charge and conspiracy to sell drugs after purchasing distribution-size quantities of cocaine from Hamdi Ayyash, a local drug supplier. Clay purchased the cocaine from Ayyash for over a year, paying on credit, meaning Ayyah fronted him the cocaine and Clay repaid Ayyash after reselling the cocaine to Clay’s customers. Clay and Ayyash negotiated the payment price at the time of each sale and coordinated meetings and transactions using pagers. Clay purchased and sold cocaine worth tens of thousands of dollars per month. On appeal, Clay argued that he and Ayyash had a simple buyer-seller agreement, which could not support a conspiracy charge. The trial judge found that they had a meeting of the minds with each other that Clay would resell drugs he purchased on credit from Ayyash and that a conspiracy could be inferred from their ongoing business.

Rule of Law

Issue

Holding and Reasoning (Flaum, J.)

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