People v. Mitchell

240 P. 36, 74 Cal. App. 164, 1925 Cal. App. LEXIS 195
CourtCalifornia Court of Appeal
DecidedAugust 22, 1925
DocketDocket No. 852.
StatusPublished
Cited by7 cases

This text of 240 P. 36 (People v. Mitchell) 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. Mitchell, 240 P. 36, 74 Cal. App. 164, 1925 Cal. App. LEXIS 195 (Cal. Ct. App. 1925).

Opinion

FINCH, P. J.

The defendant was held under two in-formations, each charging him with the crime of embezzle *166 ment. The cases were consolidated and tried together, resulting in convictions on both charges. The defendant moved for a new trial and his motion was granted as to both charges. This appeal is from the order granting a new trial. No brief has been filed in behalf of respondent and the cause was ordered submitted for decision upon the appellant’s opening brief.

The first information alleges that the defendant was president of the Modern Laundry Company, a corporation; that there came into his possession as such officer the sum of $550 “of the personal property of said Modern Laundry”; and that on the- day of September, 1922, he “did wilfully, unlawfully, feloniously, and fraudulently appropriate said money and personal property to his own use, not in due and lawful execution of his trust. ’ ’ The second information, in similar language, charges the embezzlement of $325 on or about the- day of November, 1922.

The Modern Laundry Company was incorporated March 11, 1922. The defendant was elected president thereof March 30, 1922. He was the active manager of the corporation. His authority is not shown further than may be inferred from his position in the company and his activities in its affairs. The secretary-treasurer of the company testified that the minutes do not show that the defendant was authorized “to cash checks for or on behalf of the company” or to deposit “the funds of the company in his own private account.” The record is silent as to what the by-laws provide in this respect.

March 30, 1922, the state commissioner of corporations issued his permit, authorizing the company “to sell two hundred and fifty shares of its capital stock to its incorporators for cash and fourteen thousand seven hundred and fifty shares to the public for cash, subject to a selling cost not to exceed twenty per cent of the amount paid in cash account of each subscription, upon the condition that the company, on or before the first day of October, 1922, impound in a depositary to be first selected by the company and approved by the commissioner of corporations, the net sum of fifty thousand dollars, otherwise eighty per cent of each payment was to be returned to each subscriber upon his demand therefor.” The company did not select a depositary until March, 1923. “Between six and eight thousand dollars” *167 was then deposited with the depositary so selected. This money was at a later time paid to subscribers under the order of the commissioner of corporations, they receiving, in the order of their applications therefor, eighty per cent of the respective amounts paid by them for stock, until the fund was exhausted. The fund was insufficient to reimburse all subscribers. The sums alleged to have been embezzled by defendant were received by him from two subscribers in payment for stock, and no part thereof was ever repaid toi them. The evidence does not show how many shares of stock were sold or the amount of money received therefor. It appears that the defendant received all sums paid in for capital stock and that he deposited the same to his personal credit in his private bank account. The account-books of the company were kept by or under the direction of the defendant. A witness for the prosecution, who had audited the accounts of the corporation, testified that the defendant delivered to him, for the purposes of the audit, “stock certificate books and card records of the stockholders’ accounts, showing amounts of the capital stock subscribed and the payments thereof, various canceled checks signed by Mitchell, receipted invoices, . . . one book that was supposed to be the cash book, ... a record of the receipts from stock subscriptions; it was in a very crude form.”

The defendant expended large sums of the money so received in remodeling and repairing a building which, as appears inferentially, was purchased' by the company for use as a laundry. Neither the purchase price of the property nor the amount, if any, paid thereon appears from the evidence. Neither does it appear whether the defendant appropriated to his own use any of the funds of the company. It was admitted at the trial that two subscribers for capital stock paid the defendant for the company the sums alleged to have been embezzled and that he deposited the same to the credit of his personal account. Whether these sums were included in the amount finally turned over to the depositary does not appear. The ease of the prosecution rests entirely upon the receipt by defendant of these two sums of money in Ms trust capacity as president of the company and his deposit thereof in Ms personal bank account.

In People v. Royce, 106 Cal. 173 [37 Pac. 630, 39 Pac. 524], the defendant received" the money there involved in *168 his trust capacity as treasurer of the Veterans’ Home Association and deposited the same to his personal account. He reported the receipt of the money to the bookkeeper of the association and the amount thereof was entered by the bookkeeper upon the ledger of the association. It was held that the evidence was not sufficient to sustain the charge of embezzlement. In this case, as stated, the defendant entered upon the books of the company the amounts received by him. Through a period of about ten months he paid out large sums in the remodeling and repairing of the company’s building. It is not to be presumed that the other officers and directors of the company did not have knowledge of these receipts and disbursements. There is nothing in the record, therefore, to warrant the inference that the defendant secretly made the deposits and expenditures in question. The facts are not distinguishable in principle from those in the Royce case.

Whether the deposit of the sums alleged to have been embezzled by the defendant constituted the crime charged depends upon the intent with which such deposits were made. If so deposited with the intent to devote the same to his own use the defendant thereby committed the crime of embezzlement, regardless of whether he thereafter actually devoted the money to such use. In proof of the intent with which the deposits were made, the prosecution was entitled to show all receipts by defendant of money for the company and the disposition and use made thereof by him. (People v. Ward, 134 Cal. 301 [66 Pac. 372]; People v. Cobler, 108 Cal. 538 [41 Pac. 401]; People v. Bidleman, 104 Cal. 608 [38 Pac. 502]; People v. Lorden, 62 Cal. App. 501 [217 Pac. 117].) If the books of the company which the defendant had delivered to the accountant to be audited were not available, then the prosecution had the right, upon laying a proper foundation, to prove their contents by the testimony of the accountant. The trial court properly held that “the whole evidence taken together is insufficient” to justify a conviction and that it was error to instruct the jury as follows:

“If you are convinced by the evidence in this case to a moral certainty and beyond all reasonable doubt that Mrs. Ross Burden gave her check for $325.00 for the purchase of stock of the Modern Laundry Company, and that Andrew *169

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

Related

People v. Boyd CA5
California Court of Appeal, 2022
People v. Mason
259 Cal. App. 2d 30 (California Court of Appeal, 1968)
People v. Thompson
192 P.2d 802 (California Court of Appeal, 1948)
People v. Talbot
28 P.2d 1057 (California Supreme Court, 1934)
People v. Wolin
119 Cal. App. 772 (California Court of Appeal, 1931)
People v. Morley
265 P. 276 (California Court of Appeal, 1928)
State v. Lockie
253 P. 618 (Idaho Supreme Court, 1927)

Cite This Page — Counsel Stack

Bluebook (online)
240 P. 36, 74 Cal. App. 164, 1925 Cal. App. LEXIS 195, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-mitchell-calctapp-1925.