Article Archives >> Lead Stories >> March-May 2003
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Telemarketer May Be Prosecuted for Fraud
U.S. Supreme Court says high fundraising costs may be considered in determining intent to deceive.
The U.S. Supreme Court has unanimously reversed the Illinois Supreme
Court and allowed the Illinois Attorney General to pursue fraud
claims against a telephone solicitor who kept 85% of the funds raised
for fees and expenses.
The case is a fascinating lesson in reading the language of a specific
formal Complaint. The Illinois Court read the complaint as an allegation
that spending 85% of the funds raised on expenses is by itself a
form of fraud. It threw out the Complaint on the basis that the
U.S. Supreme Court had repeatedly held that states could not impose
a percentage limit on fund raising costs without violating the First
Amendment.
Article Archives >> Lead Stories >> March-May 2003
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