People v. Schnorenberg.

2025 CO 43. No. 23SC776. Securities Fraud—Evidence—Jury Instructions.

June 23, 2025

This securities fraud proceeding required the supreme court to determine whether the court of appeals division below misconstrued the law in concluding that the trial court had reversibly erred in excluding Schnorenberg’s testimony and rejecting a defense-tendered jury instruction about the advice of counsel. This question, in turn, required the court to decide whether the mens rea of “willfully” applies to each element of securities fraud under CRS § 11-51-501(1)(b) and (c) of the Colorado Securities Act.

The court concluded that the mens rea of “willfully,” which, for purposes here, is synonymous with “knowingly,” applies to every element under § 11-51-501(1)(b) and (c). As a result, the court further concluded that Schnorenberg’s proffered testimony about the advice of his counsel was relevant to whether he had the requisite mens rea and that, therefore, the trial court reversibly erred in excluding this testimony.

The court therefore affirmed the judgment of the division below and remanded the case for a new trial on the counts at issue.