State v. Taylor
349 P.3d 696
Utah2015Background
- Taylor and Smith allegedly operated a Ponzi scheme via Ascendus Capital Management and Franklin Forbes, deceiving investors with false statements and transfers.
- The State filed charges in 2010; amended in 2011; case dismissed without prejudice and later refiled in 2011 with new counts.
- District court held securities fraud and theft are continuing offenses, so statute of limitations ran from last false statement.
- Interlocutory appeal challenged continuing offenses theory; Utah Supreme Court granted review.
- Court held securities fraud and theft are not continuing offenses; timeliness must be re-evaluated count-by-count and based on discrete completed acts.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are securities fraud charges a continuing offense? | State asserted continuing offense for securities fraud. | Taylor argued securities fraud is not continuing. | Not a continuing offense; timeliness rest on completed offer/sale/purchase. |
| Are theft charges a continuing offense? | State urged continuing offense to aggregate acts. | Taylor argued theft is not continuing. | Not a continuing offense; timeliness tied to when unauthorized control was obtained. |
Key Cases Cited
- LeBeau v. State, 2014 UT 39, 337 P.3d 254 (Utah 2014) (statutory interpretation and continuing offenses framework)
- Chadbourne & Parke v. Troice, 134 S. Ct. 1058 (S. Ct. 2014) (materiality in 'in connection with' purchases/sales of securities)
- Toussie v. United States, 397 U.S. 112 (U.S. 1970) (continuing-offense analysis and legislative intent)
- United Med. & Surgical Supply Corp., 989 F.2d 1390 (4th Cir. 1993) (mail/securities fraud timing and complete offense concept)
- Crosby v. Crosby, 927 P.2d 638 (Utah 1996) (single larceny rule and aggregation)
- Kimbel v. State, 620 P.2d 515 (Utah 1980) (single act vs. continuing offenses context)
- State v. Harrison, 561 N.W.2d 28 (Iowa 1997) (similar view on continuing offenses for theft-like statutes)
- State v. Gainer, 608 P.2d 968 (Kan. 1980) (similar view on continuing offenses for theft-like statutes)
- State v. Mullin, 886 P.2d 376 (Mont. 1994) (similar view on continuing offenses for theft-like statutes)