The defense will have its chance to begin telling its story Thursday in the J. Gary Sheets fraud trial in U.S. District Court.
Judge David Sam ruled Wednesday that the first 24 counts of the 34-count indictment are suitable for the jury to determine guilt or innocence, refusing a defense motion for directed acquittal.But on 10 other counts, concerning the Arrowhead Village Partnership, Sam said he must consider the motion further and then will rule.
Defense lawyer Peter Stirba argued that Sheets gave investors information about the risks of putting money in his Working Funds I and II, and that Sheets did not get the ideas for the funds himself and did not prepare the documents.
Assistant U.S. Attorney Tena Campbell responded, "Many of the investors did not receive a private placement memorandum," the document that defined the risk of investing. Those who did often did not read the document because they relied on Sheets' verbal assurances that the investments were safe.