In 1982, after a 20-month investigation conducted before two successive grand juries, eight defendants, including petitioners William A. Kilpatrick, Declan J. O'Donnell, Sheila C. Lerner, and The Bank of Nova Scotia, were indicted on 27 counts in the United States District Court for the District of Colorado. The first 26 counts charged all defendants with conspiracy and some of them with mail and tax fraud, while count 27 charged Kilpatrick with obstruction of justice.
The district court initially dismissed the first 26 counts for failure to charge a crime, improper pleading, and, as to charges against the bank, for failure to allege the requisite knowledge and criminal intent. Kilpatrick was tried and convicted on the obstruction of justice count. The government appealed the dismissal of the first 26 counts.
Before oral argument on the appeal, the court of appeals granted a defense motion to remand the case to the district court for a hearing on whether prosecutorial misconduct and irregularities in the grand jury proceedings were additional grounds for dismissal. United States District Judge Fred M. Winner first presided over the post-trial motions and granted a new trial to Kilpatrick on the obstruction of justice count. The cases were later reassigned to United States District Judge John L. Kane, Jr., to complete the post-trial proceedings.
After 10 days of hearings, Judge Kane dismissed all 27 counts of the indictment. The district court held that dismissal was required for violations of Federal Rule of Criminal Procedure 6 and, under the totality of the circumstances, for violations of 18 U.S.C. §§ 6002 and 6003, the Fifth and Sixth Amendments, knowing presentation of misinformation to the grand jury, and mistreatment of witnesses.
The government appealed once again, and a divided panel of the Court of Appeals for the Tenth Circuit reversed the order of dismissal. The Supreme Court granted certiorari.