Kay v. United States

303 U.S. 1, 58 S. Ct. 468, 82 L. Ed. 607, 1938 U.S. LEXIS 282
CourtSupreme Court of the United States
DecidedJanuary 31, 1938
Docket61
StatusPublished
Cited by168 cases

This text of 303 U.S. 1 (Kay v. United States) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kay v. United States, 303 U.S. 1, 58 S. Ct. 468, 82 L. Ed. 607, 1938 U.S. LEXIS 282 (1938).

Opinion

*3 Mr. Chief Justice Hughes

delivered the opinion of the Court.

Petitioner was convicted of violations of § 8 (a) 1 and (e) 2 of the Home Owners' Loan Act of 1933. Act of *4 June 13, 1933, c. 64, 48 Stat. 128, 134, amended by Act of April 27, 1934, c. 168, 48 Stat. 643, 647. 12 U. S. C., § 1467 (a) and (e). The Circuit Court of Appeals sustained the conviction, 89 F. (2d) 19, and because of the importance of the questions presented certiorari was granted. 301 U. S. 679.

The conviction was upon eight counts of the indictment, viz., counts 5 and 15 under § 8 (a) and counts 8, 12, 14, 20, 24 and 25 under § 8 (e). To count 12 petitioner had pleaded guilty but later was permitted to withdraw that plea, pleaded not guilty, and went to trial. On count 8, imposition of sentence was suspended and petitioner was placed upon probation. On the remaining seven counts, petitioner was sentenced to a year and a day in prison, the sentences to run concurrently.

The Circuit Court of Appeals refused to consider errors arising on the bill of exceptions, as it had not been settled and filed within the time permitted by Rule IX of the Criminal Appeals Rules. The court accordingly limited its consideration to the sufficiency of the indictment, entertaining and deciding the questions of the constitutional validity of the Home Owners’ Loan Act and of the provisions of § 8 (a) and (e) in particular.

The Government contends that the convictions should be sustained, irrespective of questions of the validity of any part of the statute, upon the ground that, the sentences being concurrent, the judgment should be affirmed if good under any one of the counts. In that view, the Government submits that petitioner consented to the judgment on count 12. The point is that petitioner was permitted to withdraw her plea of guilty to that count although eleven days had intervened, while Rule II (4) of the Criminal Appeals Rules requires such a motion to be made within ten days. The Government argues that the provision of the rule is mandatory and hence the judgment, as one upon consent, should be *5 affirmed without consideration of the merits. Petitioner answers that the Government by going to trial is now estopped to raise the question and further that a plea of guilty does not prevent the defendant from challenging the sufficiency of the indictment. (2 Bishop on Criminal Procedure, 2d ed., § 795.) The point does not appear to have been raised either in the District Court or in the Court of Appeals and it is based solely upon the dates of certain entries in the criminal docket without any supporting proof. We are not disposed to deal with a question of that importance presented in this manner.

First.—As to the counts under § 8 (a). 3 —Counts 5 and 15, under that provision, charge that petitioner, being the holder of a second mortgage upon certain premises, in executing the consent to accept bonds of the Home Owners’ Loan Corporation in full settlement, and for the purpose of influencing the action of the Corporation, knowingly and falsely stated that her claims were respectively in the sums of $590 and $650, whereas in fact they were respectively only in the sums of $285 and $150.

Petitioner argues that there is no allegation that a loan to the owner was made or approved, or that any payment was made to petitioner; that the second mortgagee’s consent is temporary and may be withdrawn; that it is not under oath and that there is no warranty of the truth of the information given. Petitioner argues further that any statement in the consent of a second mortgagee as to the balance due cannot endanger or directly influence any loan made by the Corporation; that the second mortgagee is not an applicant and that the practice in such cases negatives reliance on the consent, as the essential factors are the value of the property, as to which the Corporation makes its appraisal, and the earning capacity of the owner. None of these arguments is impressive. It does not lie with one knowingly making *6 false statements with intent to mislead the officials of-the Corporation to say that the statements were not influential or the information not important. There can be no question that Congress was entitled to require that the information be given in good faith and not falsely with intent to mislead. Whether or not the Corporation would act favorably on the loan is not a matter which concerns one seeking to deceive by false information. The case is not one of an action for damages but of criminal liability and actual damage is not an ingredient of the offense.

Petitioner’s main argument is that the whole scheme of the statute is invalid; that Congress had no constitutional authority to create the Home Owners’ Loan Corporation,—to provide for the conduct of a business enterprise of that character. There is no occasion to consider this broad question as petitioner is not entitled to raise it. When one undertakes to cheat the Government or to mislead its officers, or those acting under its authority, by false statements, he has no standing to assert that the operations of the Government in which the effort to cheat or mislead is made are without constitutional sanction.

We recently dealt with a similar contention that the false claims statute, Criminal Code, § 35, did not apply to a conspiracy to cheat the United States by false representations in connection with operations under a statute which this Court found to be unconstitutional. We said that such a construction was inadmissible. “It might as well be said that one could embezzle moneys in the United States Treasury with impunity if it turns out that they were collected in the course of invalid transactions. . . . Congress was entitled to protect the Government against those who would swindle it regardless of questions of constitutional authority as to the operations that the Government is conducting. Such questions cannot be raised by those who make false claims *7 against the Government.” United States v. Kapp, 302 U. S. 214, 217-218; Madden v. United States, 80 F. (2d) 672. While the instant case is not one of conspiracy to obtain money from the United States, but one of false statements designed to mislead those acting under authority of the Government, the principle involved is the same. Apart from any question of the validity of the other provisions of the Home Owners’ Loan Act, Congress was entitled to secure protection against false and misleading representations while the Act was being administered, and the separability provision of the Act (§9) is clearly applicable. Utah Power Co. v. Pfost, 286 U. S. 165, 184.

There is the further argument that the provision of § 8 (a), separately considered, offends the due process clause as being vague and uncertain.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Walter Hill v. Joseph Murphy
785 F.3d 242 (Seventh Circuit, 2015)
United States v. Lawton, Andre
Seventh Circuit, 2004
United States v. Van Dyke
820 F. Supp. 1160 (N.D. Iowa, 1993)
State v. Monastero
424 N.W.2d 837 (Nebraska Supreme Court, 1988)
United States v. Yung Soo Yoo
833 F.2d 488 (Third Circuit, 1987)
United States v. Columbus Schalah Stephens, Jr.
779 F.2d 232 (Fifth Circuit, 1985)
United States v. Alan Neal Scott
701 F.2d 1340 (Eleventh Circuit, 1983)
FIRST FED. S & L ASS'N OF GADSDEN CTY. v. Peterson
516 F. Supp. 732 (N.D. Florida, 1981)
United States v. Merlin Voorhees
593 F.2d 346 (Eighth Circuit, 1979)
United States v. Charles Glenn Johnson
585 F.2d 119 (Fifth Circuit, 1978)
United States v. Keith A. Miller
573 F.2d 388 (Seventh Circuit, 1978)
United States v. Johann Ernst Thurnhuber
572 F.2d 1307 (Ninth Circuit, 1977)
Zenith Radio Corp. v. Matsushita Electric Industrial Co.
402 F. Supp. 251 (E.D. Pennsylvania, 1975)
United States v. Joe E. Simmons
503 F.2d 831 (Fifth Circuit, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
303 U.S. 1, 58 S. Ct. 468, 82 L. Ed. 607, 1938 U.S. LEXIS 282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kay-v-united-states-scotus-1938.