United States v. Falcone

Joseph and Salvatore Falcone (defendants), along with other vendors, sold sugar and yeast to buyers who had conspired to run an illegal distilling operation. Some vendors were occasionally present when the distillers discussed their operation, raised prices and increased sales once the operation began, and took steps to disguise their ties to the distillers. Despite this, the evidence did not show the vendors knew about or participated in the distillers' conspiracy itself -- only that they sold supplies knowing some buyers intended to use them for illegal whiskey-making. The appellate court found this insufficient to convict the vendors as co-conspirators, and the government appealed to the Supreme Court.