Hardcastle v. State

755 S.W.2d 228, 25 Ark. App. 157, 1988 Ark. App. LEXIS 347
CourtCourt of Appeals of Arkansas
DecidedJuly 13, 1988
DocketCA CR 87-12
StatusPublished
Cited by11 cases

This text of 755 S.W.2d 228 (Hardcastle v. State) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hardcastle v. State, 755 S.W.2d 228, 25 Ark. App. 157, 1988 Ark. App. LEXIS 347 (Ark. Ct. App. 1988).

Opinion

James R. Cooper, Judge.

The appellant was charged by information with securities fraud, filing a false statement with the Arkansas Securities Commission, and theft of property. After a jury returned a verdict of guilty on all three counts, the appellant was sentenced to eight years for fraud and fined $10,000.00; four years for false filing and fined $6,000.00; and eight years for theft and fined $ 11,000.00. The trial court ordered the prison sentences to run concurrently, and the fines were cumulative.

The appellant argues ten points on appeal. We find that the conviction for false filing should be dismissed because the charge was barred by the statute of limitations. The appellant’s convictions are otherwise affirmed.

The appellant was charged on February 14, 1985, with making false and misleading statements in violation of Ark. Stat. Ann. § 67-1250 (Repl. 1980) [Ark. Code Ann. § 23-42-110 (1987)], in a document filed with the Arkansas Securities Commission. On October 26, 1979, the appellant allegedly caused to be filed with the Commission a claim for exemption for Founder’s Development Corporation which contained false and misleading statements. The Commission’s request for additional information on the dilution factor of the stock was responded to by a letter dated November 6,1979. The Commission then issued a letter acknowledging the filing and compliance with the filing requirements on November 20,1979, and noted that the exemption was effective for one year. The record reveals only one other communication with the Commission: a letter received by the Commission dated December 15, 1980, indicating that Marvin Clausing, M.O.N.E.Y. Makers Ltd., and Herbert Brechtel had invested in Founder’s.

It is the appellant’s contention that the charge filed against him in February 1985, alleging that he had filed falsely, was beyond the statute of limitations found in Ark. Stat. Ann. § 67-1255(i) (Repl. 1980) [Ark. Code Ann. § 23-42-105(a) (1987)]. That section provides:

Prosecutions for offenses described in this Section must be commenced within the following periods of limitation: (1) Felonies — five (5) years from the date of the occurrence; (2) Misdemeanors — one (1) year from date of occurrence. The five year felony and one year misdemeanor period of limitation does not begin to run until after the commission of the last overt act in the furtherance of a scheme or course of conduct.

The issue is when the prohibited conduct occurred. The State contends that the letter received on December 15,1980, was the last overt act committed by the appellant or, in the alternative, that the one-year period of time the exemption remained on file constituted a continuing course of conduct. We disagree on both points.

There is no evidence in the record to establish that any of the information in the December 1980 letter was false or misleading. It is clear from the plain language of § 67-1250 that the filing of a document is criminal only if it contains false or misleading statements. We find that the last overt act which occurred was the letter concerning the dilution factor filed in November 1979. Therefore, the charge filed on February 14, 1985, was beyond the five-year statutory period, and we accordingly reverse and dismiss the appellant’s conviction for filing false and misleading statements.

Because we dismiss this charge against the appellant, we will not address it further in connection with the appellant’s remaining arguments.

THE SUFFICIENCY OF THE EVIDENCE

The appellant challenges the sufficiency of the evidence. In accordance with Harris v. State, 284 Ark. 247, 681 S.W.2d 334 (1984), we review the sufficiency of the evidence, including any allegedly erroneously admitted evidence, prior to the consideration of other trial errors. In criminal cases, we view the evidence in the light most favorable to the State, and affirm if there is any substantial evidence to support the verdict. Biniores v. State, 16 Ark. App. 275, 701 S.W.2d 385 (1985). Substantial evidence must do more than merely create a suspicion; it must be of sufficient force and character to force the mind beyond mere conjecture and compel a conclusion one way or the other with reasonable certainty. Id. The fact that evidence is circumstantial does not render it insubstantial — the law makes no distinction between direct evidence of a fact and evidence of circumstances from which a fact may be inferred. Breault v. State, 280 Ark. 372, 659 S.W.2d 176 (1983).

In Count I the appellant was charged with fraud or deceit in connection with the offer, purchase, or sale of securities. Arkansas Statutes Annotated § 67-1235 (Repl. 1980) [Ark. Code Ann. § 23-42-507 (1987)] provides as follows:

It is unlawful for any person, in connection with the offer, sale or purchase of any security, directly or indirectly
(1) to employ any device, scheme, or artifice to defraud,
(2) to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading, or
(3) to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.

The persons identified in the bill of particulars as victims in Count I were Herbert Brechtel and Marvin Clausing; both testified at the trial. Clausing testified that he specifically remembered the appellant giving him a “confidential memorandum” prior to investing, which contained information on Founder’s. Brechtel did not recall the memorandum, but acknowledged his signature on the cover indicating that he had received it. He stated that he had talked with the appellant about investing, that he did not know a lot about investing in stock, and that he relied on what the appellant told him. Brechtel invested $15,000.00 and he received 30,000 shares of Founder’s stock; Clausing purchased 16,000 shares of Founder’s stock for $8,000.00.

In the confidential memorandum, P.A. Treadway was listed as a director, as president, and as secretary of Founder’s. The biographical sketch of Treadway stated that she majored in psychology at Kent State University, that she was an “Arkansas educator,” and that she had a background in marketing and management. At trial, Treadway testified that she was the appellant’s secretary, that she did not attend Kent State, that she had only been a substitute teacher for a short while, and that the only marketing and managerial experience she had was as manager of a rental company for a short period of time. She also testified that she had signed various documents at various times at the appellant’s request, but that she had never been either an officer or stockholder of Founder’s. Both Clausing and Brechtel stated that, if they had been aware of the true facts of Treadway’s background and status, they would not have invested in Founder’s.

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Bluebook (online)
755 S.W.2d 228, 25 Ark. App. 157, 1988 Ark. App. LEXIS 347, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hardcastle-v-state-arkctapp-1988.