Also known as: stakes in the venture · ownership interest · equity stake
Written by attorneys · grounded in primary & secondary sources — see below
Evidence of a defendant's financial or other interest in the success of a criminal enterprise. The factor supports an inference that the defendant acted with intent to aid or conspire rather than with mere knowledge of the crime.
Solomon Silver transferred title to a warehouse to his nephew without receiving payment. The transfer occurred after Silver learned the nephew planned to use the building for an illegal gambling operation. Because Silver stood to receive a share of the gambling proceeds, prosecutors used his financial stake to prove he intended to further the criminal activity.
After Samuel Soto's death, his surviving spouse discovered that Soto had maintained joint accounts with right of survivorship that funded an ongoing drug distribution ring. The spouse's continued receipt of profits from those accounts supplied evidence of her stake in the venture and supported conspiracy charges.
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Scott Summers held a mortgage on a commercial building. When he learned the owner used the building to store stolen goods, Summers raised the interest rate substantially above market. The inflated return gave Summers a direct financial stake in the criminal operation and permitted an inference of intent to aid the theft ring.
Steven Silva operated a telephone answering service. He knew several clients used the service to arrange prostitution and charged them triple the normal rate while handling a volume far exceeding legitimate demand. The disproportionate profits established Silva's stake in the venture and supported his conviction for conspiracy.
Samantha Stone received a percentage of the proceeds from a fraudulent investment scheme she helped promote through the mails. Her share of the illicit profits constituted a stake in the venture that proved she acted with the specific intent required for mail fraud liability.
Sylvia Santos sold large quantities of precursor chemicals at premium prices to buyers she knew were manufacturing controlled substances. The inflated volume and pricing created a stake in the venture that allowed the jury to infer Santos intended to assist the manufacturing operation.
Courts look for excessive prices charged because of the buyer's criminal purpose, sales of items with no legitimate use, or business volume grossly disproportionate to any lawful demand. Any of these facts permits an inference that the defendant intended to further the crime.
No. Most jurisdictions require proof of purpose to aid. Knowledge alone is insufficient when ordinary goods are sold at ordinary prices. A stake in the venture supplies the additional evidence of intent needed to convict.
Ordinary profit from a lawful sale does not show intent to assist crime. A stake arises only when the defendant's return depends on the success of the criminal activity itself, such as through inflated prices or a share of illicit proceeds.
…indifference, lack of concern. There is informed and interested cooperation, stimulation, instigation. And there is also a ‘stake in the venture’ which, even if it may not be essential, is not irrelevant to the question of conspiracy.” (319 U.S. at pp. 710-713 [87 L.Ed. at pp. 1681, 1682].) While Falcone and Direct Sales may…