People v. Kagan

264 Cal. App. 2d 648, 70 Cal. Rptr. 732, 1968 Cal. App. LEXIS 2129
CourtCalifornia Court of Appeal
DecidedAugust 5, 1968
DocketCrim. 6378
StatusPublished
Cited by21 cases

This text of 264 Cal. App. 2d 648 (People v. Kagan) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. Kagan, 264 Cal. App. 2d 648, 70 Cal. Rptr. 732, 1968 Cal. App. LEXIS 2129 (Cal. Ct. App. 1968).

Opinion

*652 MOLINARI, P. J.

On this appeal from a judgment of conviction for grand theft (Pen. Code, § 487) and forgery (Pen. Code, § 470), defendant makes six separate contentions which we shall discuss separately with the relevant details of the record after setting forth the facts surrounding the alleged criminal conduct.

Facts

In July 1965, defendant, accompanied by his attorney William Berger, approached Miss Charlotte Shaber, president of National Business Factors, a firm engaged in factoring accounts receivable, credit reporting and collections, with a business proposition as follows: Defendant represented that he had contacts in Pakistan which made it possible for him to purchase T-shirts cheaply; that he already had approximately $14,000 worth of invoices from retailers and distributors for the purchase of such T-shirts; but that the Pakistani manufacturer would ship only on a letter of credit. Accordingly, defendant represented to Miss Shaber that if her firm would supply the funds to purchase a letter of credit, there would be a constant flow of additional invoices which Miss Shaber could purchase at a discount. Defendant showed various invoices to Miss Shaber, agreeing to give her time to investigate these invoices and also agreeing to furnish her with a financial statement.

Several days later, Miss Shaber having confirmed the genuineness of most of the invoices, defendant brought to her office a financial statement which he stated was inadequate. At this time Miss Shaber suggested the use of an irrevocable letter of credit, but defendant objected to this method, stating that he did not wish to disclose the name of the Pakistani manufacturer for fear that his buyers would'import T-shirts directly. After some discussion the parties agreed that defendant’s bank, Crocker-Citizens National Bank, would handle the letter of credit and would furnish a letter stating that should the credit not be utilized, the funds would be returned to Mr. Berger as trustee.

Accordingly, on July 23, 1965, defendant and Mr. Berger brought Miss Shaber a letter from defendant’s bank and a letter from Mr. Berger acknowledging his contingent fiduciary relationship with Miss Shaber. Miss Shaber issued a check in the amount of $11,059.84 to Designed Trends, the fictitious name under which defendant was doing business, and the parties signed a factoring agreement whereby, basically, Miss Shaber’s firm agreed to purchase invoices from defendant for *653 80 percent of their face value, plus percentages of payments received, calculated on a sliding scale.

The following day defendant took Miss Shaker’s check to the Mill Valley Branch of the Crocker-Citizens National Bank, using the check to open an account in the name of Designed Trends. Almost immediately thereafter he withdrew $550 from the Designed Trends’ account and deposited said sum to his personal account at the same bank, which account was overdrawn at the time of this deposit. On July 27, 1965, defendant purchased from the Crocker-Citizens National Bank a letter of credit in the amount of $8,668, with the beneficiary being Shish Mahal Hosiery Limited in Lahore, West Pakistan. A copy of this letter with the amount and the name of the Pakistani manufacturer cut out of it was subsequently delivered to Miss Shaber by Mr. Berger. However, upon Miss Shaker’s request, she was furnished a copy showing the amount of credit, and, at that time defendant explained that the difference between the amount of Miss Shaber’s check and the amount of the letter of credit was due to such expenses as shipping and docking charges.

On August 12, 1965, defendant and Mr. Berger brought Miss Shaber more purchase orders to factor. Miss Shaber asked the status of the prior transaction, having received no notification of it, and defendant replied that certain amendments relating to the manufacture of the T-shirts had been effected. After confirming the additional purchase orders, Miss Shaber advanced defendant $23,768.80 pursuant to the factoring agreement. Subsequently, however, she stopped payment on the check since she had no proof of delivery of the goods under the first set of invoices factored. Defendant and Mr. Berger threatened suit, and eventually the parties compromised and Miss Shaber advanced defendant a check for $11,680 made out to Designed Trends.

On August 18, 1965, defendant deposited a cashier’s check for $11,680 to the Designed Trends’ account. The next day he made a number of withdrawals from this account, depositing the withdrawn funds into several of his business and personal accounts, all of which were overdrawn at the time of the deposit 1

On September 2, 1965, defendant purchased a letter of credit in the amount of $1,000 from Crocker-Citizens National *654 Bank. This letter, which again named Shish Mahal Hosiery-Limited, as beneficiary, showed an order for 5,000 dozen T-shirts at 20 cents a dozen. Thereafter Mr. Berger delivered to Miss Shaber a photocopy of a letter of credit, this document showing the amount of the letter of credit as $10,000 and the price per dozen of the T-shirts as $2.00. (Defendant obtained this document by photocopying the letter of credit, which he in fact procured, altering this photocopy, and photocopying the altered photocopy.) Once again, defendant told Miss Shaber that the discrepancy between the funds she had advanced and the purported amount of the letter of credit was due to docking costs.

On September 24, 1965, after Miss Shaber had tried unsuccessfully to contact defendant, defendant brought her a check for $358.80 as payment on one of the smaller invoices. At this time defendant stated that the T-shirts had not arrived because of the Indian-Pakistan war. Miss Shaber then suggested that the letters of credit be cancelled and defendant stated that he had done so. He also suggested that the goods might be produced in Korea., but Miss Shaber stated that she wanted her money back.

Meanwhile, unbeknownst to Miss Shaber, defendant’s Pakistani venture had failed. Accordingly, on September 22, 1965, the first letter of credit having expired -unutilized, the issuing bank, at defendant’s request, transmitted the money represented by this letter of credit into defendant’s Designed Trends’ account. The next day defendant gave Mrs. Marjorie Gary, who was in the import-export business and had worked with defendant on his Pakistani venture, a $7,500 cashier’s check purchased with the funds in the Designed Trends’ account and told her to purchase a $7,400 cashier’s check and to keep $100 for herself. Accordingly, Mrs. Gary obtained a $7,400 cashier’s check payable to defendant’s wife, Blaine Kagan, who used the check to open a new account for Designed Trends at the Wells Fargo Bank. From this account Mrs. Kagan immediately withdrew $3,400 and less than two months later the balance of this account was reduced to $7.15.

On October 8, 1965, the funds from the second letter of credit, for $1,000, were returned to the Designed Trends’ account at the Crocker-Citizens National Bank.

Ultimately Miss Shaber learned that the letters of credit had been cancelled and that the second letter was not for $10,000.

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

Related

People v. Kaufman
California Court of Appeal, 2017
People v. Kaufman
225 Cal. Rptr. 3d 334 (California Court of Appeals, 5th District, 2017)
People v. Robertson CA2/4
California Court of Appeal, 2014
People v. Kimble CA3
California Court of Appeal, 2014
People v. Fenderson
188 Cal. App. 4th 625 (California Court of Appeal, 2010)
People v. Counts
31 Cal. App. 4th 785 (California Court of Appeal, 1995)
People v. Vincent
19 Cal. App. 4th 696 (California Court of Appeal, 1993)
Commonwealth v. Rosenzweig
522 A.2d 1088 (Supreme Court of Pennsylvania, 1987)
People v. Smith
155 Cal. App. 3d 1103 (California Court of Appeal, 1984)
People v. North
131 Cal. App. 3d 112 (California Court of Appeal, 1982)
People v. Cooper
83 Cal. App. 3d 121 (California Court of Appeal, 1978)
State v. Arndt
529 P.2d 887 (Court of Appeals of Washington, 1974)
People v. Milan
507 P.2d 956 (California Supreme Court, 1973)
People v. Hernandez
18 Cal. App. 3d 651 (California Court of Appeal, 1971)
People v. Cheffen
2 Cal. App. 3d 638 (California Court of Appeal, 1969)
People v. Liberto
274 Cal. App. 2d 460 (California Court of Appeal, 1969)
State v. Compton
450 P.2d 79 (Idaho Supreme Court, 1969)

Cite This Page — Counsel Stack

Bluebook (online)
264 Cal. App. 2d 648, 70 Cal. Rptr. 732, 1968 Cal. App. LEXIS 2129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-kagan-calctapp-1968.