UPDATE: A version of this story was broadcast on Friday, July 19, and Saturday, July 20, 2019.
The Kansas Supreme Court reversed an appeals court decision and dismissed criminal charges against two former Wichita developers known as the Minnesota Guys.
David Lundberg and Michael Elzufon were charged with 61 counts of securities fraud and selling unregistered securities in 2015. The state alleged the pair illegally sought investors for redevelopment projects in downtown Wichita.
A Sedgwick County District Court judge dismissed most of the charges because the securities sales were made in California, not Kansas, meaning Kansas did not have jurisdiction in the case.
The state Court of Appeals overturned that decision, ruling the Kansas Uniform Securities Act was broad enough to include jurisdiction in the case.
But the Supreme Court reversed that decision and reinstated the Sedgwick County District Court ruling. The Supreme Court said the state’s jurisdiction is limited to situations in which the offer or sale originates within the boundaries of Kansas.
Tom Shine is director of news and public affairs at KMUW. Follow him on Twitter @thomaspshine.
