Patterson v. United States

39 App. D.C. 84, 1912 U.S. App. LEXIS 2188
Court of Appeals for the D.C. Circuit·Decided May 30, 1912·No. No. 2362·Published·Cited by 1 cases

Opinion

Mr. Chief Justice Shepard

delivered the opinion of the Court:

Appellant, defendant below, was found guilty of the crime of embezzlement under an indictment charging the wrongful conversion to his own use of the sum of $80.60, which had come into his possession as the attorney of one Cora Harris, and by virtue of his employment as an attorney by her.

Sec. 834 of the Code of the District of Columbia [31 Stat. at L. 1325, chap. 854] reads as follows: If any agent, attorney, clerk, or servant of a private person or copartnership, or any officer, attorney, agent, clerk, or servant of any association or incorporated company, shall wrongfully convert to his own use, or fraudulently take, make way with, or secrete with intent to convert to his own use, anything of value which shall come into his possession or under his care by virtue of his employment or office, whether the thing so converted be the property of his master or employer or that of any other person, copartnership, association, or corporation, he shall be deemed guilty of embezzlement.”

The evidence shows that defendant was retained by Cora Harris as her attorney to collect a claim which she had against [87]*87an insurance company. It was agreed that for his services he should have one third of the amount that might be collected. Later, at the request of the defendant, Cora Harris and her husband, Burrell Harris, executed the following paper prepared by him:

Know all men by these presents, that we, Cora Harris and Burrell Harris, for value received, have hereby transferred and assigned and set over unto John W. Patterson, all and singular the amount due us or either of us as beneficiaries under the insurance policy issued by the Equitable Life Insurance Company of the District of Columbia, and numbered 407, 433.

And we do hereby authorize and empower the said John W. Patterson to bring suit for the recovery of said insurance and do all other things that he may deem necessary to these premises as fully and as effectually as we would do if personally present at the doing thereof, with the full power of substitution and revocation.

Done this the 23d day of October, a. d. 1909.

Cora Harris.

Burl Harris.

In pursuance of this authority, defendant entered suit against the insurance company, and recovered a judgment. After judgment, and before payment thereof, defendant obtained from Mrs. Harris a second assignment as follows:

Know all men by these presents, that I, Cora Harris, of the District of Columbia, and beneficiary under policy No. 407, 433, for value received, have transferred, set over, and assigned unto my attorney, Mr. John W. Patterson, all my right, title, and interest in and to the judgment rendered this 18th day of October, 1910, by reason of the said policy against the Equitable Industrial Life Insurance Company of the District [88]*88of Columbia, wherein Cora Harris is the complainant and the said company is the defendant.

Witnesses:

Bessie Malvin.

Cora Harris and her husband both testified that both instruments were executed at the instance of defendant, to enable him, as he represented to them, to collect the claim against the insurance company, and to secure the payment of his fee. Nothing was paid to them for executing said papers. The judgment was obtained October 10th, 1910. The same was paid to defendant October 29th, 1910, in a check to him as “attorney for Cora Harris,” on the Dime Savings Bank.

On the same day the cheek was cashed by the bank. Produced, it showed the indorsement,—“John W. Patterson, Attorney for Cora Harris.” Defendant did not inform Cora Harris of the collection of the money until January, 1911. Repeated demands were made upon him for the money, and he made many promises to deliver the same, but failed to make the delivery. On February 10, 1911, he told Cora Harris that the case could not be settled then, but would have to stand for a while. She then caused his arrest. His reason for not settling was that the superintendent of the insurance company had notified him that the money had been procured by fraud, and steps would be taken to recover it. When arrested, February 10, 1911, he told the officer that he had come to see Cora Harris to make payment. Searched, $9 were found in his possession. He then said he expected to settle with a check. No check was found on his person.

On his own behalf defendant testified that the assignments were made to secure his fee of one third of the collection. “That he never considered that the aforesaid assignments vested in him any title to the sum collected, nor did he so claim, but their sole purpose was to secure the payment of his fee of one third of the proceeds collected.” He further testified that [89]*89be did not use any of said money, but deposited tbe same in a box in the vault of the Lincoln National Bank. That he kept it because he felt sure from what Bennett, the insurance company’s superintendent, said he would bring suit to set aside the judgment for fraud, or bring some criminal action. That he did not wish to use the money, but held it on account of Bennett’s threats. He introduced evidence tending to show that the money had been so deposited, and the same was produced in the police court, and was again produced on this trial.

In rebuttal the government produced evidence tending to show that the insurance company had never contemplated an effort to recover the money, and that Bennett had not expressed his intention to defendant to institute either civil or criminal proceedings respecting the matter.

The only exception taken on the trial was to the following sentence in the charge: “The question of intent to defraud is not a material element, and the government is not required to prove an intent to defraud at the time of a wrongful conversion of the money, if such there was.” The remainder of the charge is not contained in the record.

There was no error in this instruction. O’Brien v. United States, 27 App. D. C. 263—269. Sec. 834 of the Code has been held to describe “two classes of acts, either one of which constitutes embezzlement; the first being the wrongful conversion to his own use, by the accused, of property which has come into his possession by virtue of his employment, and the second being the fraudulent taking, making away with, or secreting with intent to convert such property to his own use.” Gassenheimer v. United States, 26 App. D. C. 432. The offense of the defendant was that defined in the first clause of the section, namely, the wrongful conversion of the money to his own use.

As the word “fraudulently” is not made an element of this offense, it was held in O’Brien’s Case, supra, that it was not necessary to allege in the indictment that the conversion was with intent to defraud. It was said by Mr. Justice McOomas, who delivered the opinion of the court: “To wrongfully convert [90]*90such money is an act in its nature evil, and the statement of the act itself imports the evil intent. * * * Stephen’s Digest Crim. Law, p. 254, note 4. Wrongful acts knowingly committed cannot be excused on the ground of innocent intent.” It not being necessary to allege the intent to defraud, it was held that a charge that such intent should be proved was rightly refused. See p. 268.

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Patterson v. United States, 39 App. D.C. 84, 1912 U.S. App. LEXIS 2188 (D.C. Cir. 1912).

39 App. D.C. 84 (Patterson v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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