Barron v. Nevada
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Barron v. Nevada
Case: Barron v. Nevada (1989)
Subject Category: Criminal
Agency Involved: Criminal Case
Court: Nevada Supreme Court
Case Synopsis: The Nevada Supreme Court was asked if the charges of embezzlement and obtaining
money under false pretenses were mutually exclusive in the case of the promoter of a pyramid scheme
Legal Issue: Can a promoter of a pyramid scheme be convicted of both embezzlement and obtaining
money under false pretenses or are those charges mutually exclusive?
Court Ruling: The Nevada Supreme Court held that a person could be found guilty of both
embezzlement and obtaining money under false pretenses because the charges are not necessarily
mutually exclusive. In operating their pyramid scheme, Barron solicited legitimate investments from
clients at first, satisfying the embezzlement charge, and then continued to solicit more money from
clients under false pretenses. Barron oversold investments in deeds of trust and used the investments of
later customers to pay off earlier ones. Because there were multiple investments of money, both
charges could stand, as they represented two distinct crimes.
Practical Importance to Business of MLM/Direct Sales/Direct Selling/Network Marketing/Party
Plan/Multilevel Marketing: Multiple criminal charges may stem from the same course of conduct.
