People v. Lyon

2 N.Y. Crim. 484, 40 N.Y. Sup. Ct. 623
CourtNew York Supreme Court
DecidedOctober 15, 1884
StatusPublished

This text of 2 N.Y. Crim. 484 (People v. Lyon) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. Lyon, 2 N.Y. Crim. 484, 40 N.Y. Sup. Ct. 623 (N.Y. Super. Ct. 1884).

Opinion

Bradley, J.

The defendant, by indictment found against him at the Erie Court of Sessions, in November, 1877, was charged with receiving, converting, &c., $2,200 owned by the city of Buffalo, with intent to defraud that city, on September 14, 1875.

This presentment was- made pursuant to chapter 19, Laws of 1875, which provides, that “Every person, who with intent to defraud, shall wrongfully obtain, receive, convert, pay out or dispose of, or who with like intent by willfully paying, allowing or auditing any false or unjust claim, or in other manner or way whatever, shall aid or abet any other in wrongfully obtaining receiving, converting, paying out or disposing of any money, funds, credits, or property, held or owned by this state or held or owned officially or otherwise for or on behalf of any public or governmental interest, by any municipal or other public corporation, board, officer, agency, or agent of any city, county, town, village or civil division, subdivision, department or portion of this state, shall, on conviction of such offense, be punished by imprisonment in a state prison for a term not less than three years or more than ten years, or by a fine not exceeding five-times the loss resulting from the fraudulent act or acts, which he shall have so committed, aided or abetted, . ... or by both such imprisonment and fine.”

He was found guilty, and by the judgment of the court sentenced to four years imprisonment in the state prison at Auburn.

He brings this appeal, and in his behalf it is contended that errors to his prejudice were committed at the trial. It appears, that in 1852 the defendant engaged in the real estate business —so called—in the city of Buffalo.

In 1857, Joseph Bork, as clerk, went into the service of the defendant and one Baker, who was then associated with him in the business, and in 1866 Bork became a member of the firm, then known as Lyon, Baker & Co. In 1870 they formed another partnership, having the firm name of Lyon & Co., consisting of Lyon, Bork and one Wright, for the purpose of banking business. These two firms occupied the same room, and had [507]*507clerks common to both, kept separate sets of books, and occupied different desks. Early in the year 1872, Wright went out of the latter firm, and about the first of February that year, Bork’s interest became one-third in both firms, which were composed of the same persons and continued so until February 1, 1874, when Baker sold out his interest to Wescott and McManus, and the name of the firm of Lyon, Baker & Go., was changed to that of Lyon, Bork & Go., and the business of both firms was carried on until the last of December, 1875, when it was quite abruptly terminated. Bork, on 6 February 1872, was elected treasurer of the city of Buffalo, qualified and entered upon the duties of the office about the fifteenth of the month. Was re-elected in Bov ember, 1874, for the term of two years from the first Monday of January following.

He entered upon this term of his office in January, 1875, and continued to act as such until he was by the mayor of the city suspended from office on December 31, 1875.

Prior, and up to about the time of the election of Bork in 1872, there had been an officer of the city, known as receiver of taxes, which office was abolished and thereafter the duties of it were vested in the treasurer of the city, and when Bork went into office in 1872, he made that business a department in his office and one Werrick cashier in that department. Bork was engaged in the business of the two firms, and soon financial relation was created and carried on to quite a large extent between the treasurer’s office and the two firms in a manner which will hereafter be briefly mentioned. The jury were authorized to find and necessarily did find that on September 13, 1875, the sum of $2,200 in currency, belonging to the city, was taken from its treasury, by and to the firm of Lyon & Co. and appropriated and used by that firm in and for the purposes of its business, and was not repaid to the city. Bork on the day following (14 September) drew his check for that amount on Lyon & Go., which was never presented for payment nor paid, but was left and remained in the city treasurer’s office.

The testimony tends to show that somebody went from the office of the firm after and obtained the money in question, for the firm.

It does not appear what particular person did it, but it is [508]*508evident that it was done by the personal direction or authority of Pork or by him.

He says his recollection is, “ that the $2,200, was borrowed on the 13th September at the Treasurer’s office by some one from Lyon & Co’s office.”

The defendant was not then in the city and had no personal knowledge' of this transaction at that time. To charge him with the offense, evidence of transactions and circumstancesextending through the entire period, from the time Bork became city treasurer was given, which developed a remarkable history of peculation bearing directly on Bork as such treasurer, and by which was taken and diverted from the city treasury upwards of four hundred thousand dollars.

This evidence tended to show and justified the conclusion, that while the firm of Lyon, Baker & Co. and the members of it, had some property, the banking firm of Lyon & Co. was not supplied with any capital by the members, but its disbursements were dependent upon moneys received in' the course of its business from other sources, that it did considerable business, and from time to time, as necessity required, currency was taken from the city treasury and used by the firm for its purposes, some of which was repaid, but during the period of nearly four years, money so taken from the treasury, and not repaid, amounted to about $50,000 ; that the firm of Lyon, Baker & Co. and Lyon, Bork & Co. doing a real estate and insurance business, represented a large number of property owners, residents and non-residents of the city, whose interests in that respect they looked after, collected rents, paid taxes, &c., and for such disbursements for some of them, the firm did receive rents and from others of them obtained money; that when the payment of city taxes was required in each of the years 1872, 1873, 1874 and 1875, instead of paying the amount of the taxes from them into the city treasury, the firm through the aid of Bork, the treasurer, caused those taxes to be marked off the list as paid, had them receipted, charged the amounts to those persons assessed, made checks in name of Lyon, Baker & Co., and Lyon, Bork & Co. on Lyon & Co. for the amounts, which was taken by Bork and the money used in the business of the firm.

[509]*509Those checks were never presented for payment, nor was the money paid into the treasury.

The taxes thus disposed of included those of the firm and its members on their property and amounted to over $60,000 in 1872, $27,000 in 1873, upwards of $117,000 in 1874, and something more than $25,000 in 1875. The facilities to obtain money for the treasury were greatly increased by the issue of bonds during those years by the city pursuant to statutes for various purposes, and a large amount of them, were, in fact, so issued.

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Bluebook (online)
2 N.Y. Crim. 484, 40 N.Y. Sup. Ct. 623, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-lyon-nysupct-1884.