Legal Opinion

Webster v. Omnitrition International, Inc.

Court of Appeals for the Ninth Circuit

Decided March 4, 1996No. Nos. 94-16477, 94-16478PublishedCited by 9 opinions

1Opinion of the Court

BEEZER, Circuit Judge:

We consider what constitutes an inherently fraudulent pyramid scheme for purposes of several federal antifraud statutes.

Shaun Webster and Robert Ligón represent a class of participants (collectively ‘Webster”) in a “multi level marketing” pro*780gram promoted by Omnitrition International, Inc. (“Omnitrition”). Webster alleges that Omnitrition, Roger Daley, Charles Ragus, James Fobair and Jerry Rubin operated an inherently fraudulent pyramid scheme under both California and federal law. Webster amended the complaint to add as defendants Omnitrition’s outside counsel, Douglas…

2Cases cited33 opinions

  1. Securities and Exchange Commission v. W. J. Howey Co.Supreme Court of the United States · 1946
  2. Herman & MacLean v. HuddlestonSupreme Court of the United States · 1983
  3. Lampf, Pleva, Lipkind, Prupis & Petigrow v. GilbertsonSupreme Court of the United States · 1991
  4. Reves v. Ernst & YoungSupreme Court of the United States · 1993
  5. Jeanette Jesinger v. Nevada Federal Credit Union, a Federally-Chartered Credit Union Robert W. FleischmanCourt of Appeals for the Ninth Circuit · 1994

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3Cited by9 opinions

  1. Fed. Sec. L. Rep. P 99,071, 96 Cal. Daily Op. Serv. 1419, 96 Daily Journal D.A.R. 2427 Shaun Webster and Robert Ligon v. Omnitrition International, Inc. Jim Fobair Roger Daley Charles Ragus and Jerry Rubin, Shaun Webster and Robert Ligon v. Douglas Adkins and Gardere & WynneCourt of Appeals for the Ninth Circuit · 1996
  2. Paul M. Kirwin v. Price Communications Corp.Court of Appeals for the Eleventh Circuit · 2004
  3. Miron v. Herbalife International, Inc.Court of Appeals for the Ninth Circuit · 2001
  4. Securities & Exchange Commission v. International Heritage, Inc.District Court, N.D. Georgia · 1998
  5. Securities & Exchange Commission v. International Heritage, Inc.District Court, N.D. Georgia · 1998

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