From our private database of 47,500+ case briefs, written and edited by humans—never with AI.

United States v. Leonard

United States Court of Appeals for the Second Circuit
529 F.3d 83 (2008)

Written by Eric Maddox, JD

Facts

Paul Dickau and Nanci Silverstein (defendants) operated independent sales offices that sold interests in several limited liability corporations (LLCs). These LLCs were created to produce motion pictures. Dickau and Silverstein solicited investments in the LLCs and mailed offering materials to potential investors. The offering materials included documents indicating that investors would play an active role in the management of the LLCs. However, the investors were actually given a very passive role in the management of the LLCs. The investors rarely voted, were not given an opportunity to negotiate the terms of the investment agreement, and did not accrue managerial rights until the LLCs were fully organized. Additionally, the investors were not required to have any particular experience in the film industry. Whenever an interest was sold in the LLCs, Dickau and Silverstein would receive a commission. The government charged Dickau and Silverstein with securities and mail fraud. In district court, a jury returned a verdict finding Dickau and Silverstein guilty of securities and mail fraud, based on Dickau’s and Silverstein’s failure to accurately disclose the sales commissions that were received. This disclosure is mandatory under securities laws. Dickau and Silverstein appealed, asserting that the investments in the LLCs did not constitute securities.

Rule of Law

The rule of law is the black letter law upon which the court rested its decision. To access this section, please start your free trial or log in.

Issue

The issue section includes the dispositive legal issue in the case phrased as a question. To access this section, please start your free trial or log in.

Holding and Reasoning (Katzmann, J.)

The holding and reasoning section includes:

A "yes" or "no" answer to the question framed in the issue section;
A summary of the majority or plurality opinion, using the CREAC method; and
The procedural disposition (e.g., reversed and remanded, affirmed, etc.).

To access this section, please start your free trial or log in.

What to do next…

Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 964,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.
Unlock this case brief Read our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.
Learn about our approach Read more about Quimbee

Here's why 964,000 law students have relied on our case briefs:

Written by law professors and practitioners, not other law students. 47,500 briefs, keyed to 1,006 casebooks. Top-notch customer support.
The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.
AI-generated podcast version of every brief — listen on the go, between classes, or whenever reading isn’t an option. New

Access this case brief for FREE

With a 7-day free trial membership

Here's why 964,000 law students have relied on our case briefs:

Reliable - written by law professors and practitioners, not other law students
The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
Access in your class - works on your mobile and tablet
47,500 briefs - keyed to 1,006 casebooks
Uniform format for every case brief
Written in plain English - not in legalese and not just repeating the court's language
Massive library of related video lessons - and practice questions
Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership

Understand your casebook readings in seconds

Use our case briefs to comprehend your casebook readings faster, supplement your notes and outlines, and outshine your peers in class.

Get instant access to over 47,500+ expert-written case briefs in a searchable database keyed to 1,006 law school casebooks.

Start your free 7-day trial