People v. Ephraim

250 P. 873, 79 Cal. App. 713, 1926 Cal. App. LEXIS 273
Procedural entryThis page is a short order in People v. Ephraim. Read the opinion of the Court — 77 Cal. App. 29
California Court of Appeal·Decided November 18, 1926·No. Docket No. 1262.·Published

Opinion

KNIGHT, J.

The defendant herein was found guilty of embezzlement and has appealed from the judgment of conviction and the order denying his motion for a new trial, urging as grounds for reversal insufficiency of the evidence and misconduct of the district attorney.

The property alleged to have been embezzled was a promissory note for the payment of the sum of $500, signed by Morris Chernow and wife, and delivered to appellant in part payment of the purchase price for the sale to Chernow and one Belan of an apartment house business in Oakland, owned and operated by Mrs. Nellie Keaeh, the information charging that said note came into appellant’s possession as agent and bailee of Mrs. Keaeh and was by him fraudulently and feloniously appropriated to his own use. The fact that appellant received the note from Chernow is not controverted, nor is there any claim made that the same was not afterwards converted by appellant to his own use, but the ownership of said note is disputed. With respect thereto appellant contends that the evidence fails to establish any agency between himself and Mrs. Keaeh relating to the sale of her interests in said apartment house, but,' on the contrary, shows that he was acting as principal, and as such acquired said note in- a transaction had with Chernow separate and distinct from his business relations with Mrs. Keaeh; and, moreover, that it shows that he appropriated the note “openly and avowedly, and under the claim of title preferred in good faith”; and that therefore under the provisions of section 511 of the Penal Code he cannot be held to be guilty of embezzlement even though his claim of title be untenable.

*716 After reviewing the evidence we are satisfied that the propositions thus advanced by appellant as absolving him from the commission of any criminal act are founded upon conflicting testimony, and that being so, the verdict of the jury must be held as controlling. The evidence supporting the conviction as it is revealed by the record may be stated as follows: In June, 1924, Mrs. Keach was lessee of the Coronado apartments in Oakland and owner of the furniture and equipment therein, subject to a chattel mortgage. Desiring to sell her interests, she listed the same with real estate brokers, among them being one Spencer. Appellant was not a licensed real estate broker, but claimed to have been engaged in the business of buying and selling property on his own account. He inspected the Coronado apartments at Spencer’s invitation, but after .such inspection informed Mrs. Keach that he “could not do anything’’ with the property. A few days later, however, he found two prospective purchasers, Chernow and Belan, who examined the apartments in company with appellant and Spencer, but were unable to agree with Mrs. Keach upon terms of sale. They were about to leave, but after holding a brief conference among themselves outside of the house, appellant, accompanied by Spencer, returned into the house and at appellant’s solicitation Mrs. Keach finally agreed to accept $2,500 in cash for her interests, and out of that sum to extinguish the chattel mortgage amounting to $500 and to pay appellant a commission of $300, leaving a net sale price to her of $1,700. Later on the same day, at appellant’s office, Chernow and Belan expressed themselves as being satisfied with the amount of purchase price, but stated that Mrs. Keach’s lease which was about to expire contained an option calling for an extension of only two years, and that they wanted a lease covering a term of four or five years. Appellant replied that he believed such a lease could be obtained. Chernow also stated that he would be unable to pay the full amount of the purchase price in cash, being, short $500, but that he was the owner of a promissory note for $1,875, payable in monthly installments of $25 each, secured by a trust deed to Oakland property, which he was "willing to pledge as security for a loan of $500. Appellant said that, personally he was unable to lend the money, but assured Chernow that the matter could be handled through *717 tlie bank. Thereupon Chernow and Belan entered into a written .agreement with appellant to take a five-year lease and to purchase Mrs. Keaeh’s interests, and paid appellant a deposit of $400 in addition to the sum of $100 already paid to him. Appellant notified Mrs. Keaeh of the purchasers’ acceptance, and thereafter obtained a satisfactory lease from the owners of the property, naming Chernow and Belan as lessees, for which service the lessors paid appellant $250. A bill of sale was then prepared by appellant and executed by Mrs. Keaeh, transferring her interests to Chernow and Belan, and was placed in appellant’s hands for delivery to the vendees upon the payment of the balance of the purchase price. On June 26, 1924, the sale was consummated by appellant in the absence of Mrs. Keaeh, by accepting the note in question and the balance of the purchase price in cash, and from the cash received he deducted his commission of $300, the purchasers taking possession of the property on July 1st.

As to the circumstances surrounding the execution of the promissory note for $500 and its subsequent conversion by appellant, the evidence discloses that in order to prevent a collapse of the sale and notwithstanding that Mrs. Keaeh had ■ authorized only a cash sale, appellant accepted said note for $500 as part of the purchase price The form of the note was prepared by appellant, naming himself as payee thereof, but before it was signed, Chernow’s attorney asked appellant, in Chernow’s presence, as to his reason for naming himself as payee. Appellant replied that since Mrs. Keaeh demanded all cash he had made arrangements with the bank to loan $500 on the Chernow note, and that he would pay the money received from the bank to Mrs. Keaeh. At the same time he agreed with Chernow and his attorney, upon the latter’s demand, to deposit said note in escrow with the bank along with the security, consisting of the promissory note for $1,875 and the trust deed securing the same; also the assignment to appellant of said trust deed, and a reassignment of the same to Chernow. As a matter of fact, appellant had not made any arrangements with the bank, nor did he afterwards attempt to do so; and the next morning, instead of completing the escrow as he had agreed, he deposited with the bank only a copy of the note for $500, along with the secured note for $1,875,. *718 and an assignment of the trust deed, and about a month later endeavored to dispose of the Chernow security to an investment broker, but, being unsuccessful, sold the original Chernow note for $500 to said broker, receiving therefor the sum of $232, no part of which he paid to Mrs. Keaeh.

With reference to appellant’s business relations with Mrs. Keaeh subsequent to the date of the sale on June. 26, 1924, the evidence shows that as soon as the transaction with the purchasers was consummated, appellant notified her of that fact. He stated further that owing to the inability of the purchasers to pay the entire amount of the purchase price in cash, he had accepted Chernow’s note for $500 as part payment thereof, but that he would obtain a loan of $500 from the bank on said note and pay the amount received to her; that thereby she would be paid the full amount of the purchase price in cash as demanded. Within a few days after the purchasers had taken possession of the property, Mrs.

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People v. Ephraim, 250 P. 873, 79 Cal. App. 713, 1926 Cal. App. LEXIS 273 (Cal. Ct. App. 1926).

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