People v. Paddock

133 N.E. 240, 300 Ill. 590
CourtIllinois Supreme Court
DecidedDecember 22, 1921
DocketNo. 14131
StatusPublished
Cited by2 cases

This text of 133 N.E. 240 (People v. Paddock) is published on Counsel Stack Legal Research, covering Illinois 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. Paddock, 133 N.E. 240, 300 Ill. 590 (Ill. 1921).

Opinion

Mr. Justice Duncan

delivered the opinion of the court:

Hugh E. Paddock, plaintiff in error, (hereinafter referred to as defendant,) was indicted, tried and convicted in the circuit court of Whiteside county for embezzling $1361 of the money and property of Frank Specht. A motion for a new trial was overruled and defendant was sentenced to the penitentiary. This writ of error has been sued out to review the record.

The indictment charges that the defendant was employed by Frank Specht to clerk his public auction sale on December 14, 1920, and that by virtue of his employment, and as agent aforesaid, he received into his possession the sum of $1361, the same being the property of Specht, and that without the consent of Specht he unlawfully, feloniously and fraudulently converted and appropriated said money, funds and property of Specht to his own use, with intent then and there unlawfully and feloniously to convert the same to his own use and to embezzle the same, etc.

Defendant was, and had been for eighteen years, clerk and cashier of his father’s private bank at Prophetstown, in the said county, until it was required, under the law, to close its business on December 30,- 1920. The evidence does not disclose whether this bank was solvent or insolvent, but it is intimated, and even stated, in the briefs of the parties that after the bank was closed it was discovered that it was insolvent. Defendant was also in the insurance business and acted as clerk at various auction sales. He owned no interest in the bank. On December 14, 1920, he was employed by Frank Specht, the prosecuting witness, to clerk for an auction sale held by Specht on his farm near Prophetstown. As clerk defendant kept the sale book and collected the cash, checks or notes that were paid on sales. The cash and checks collected by him amounted to $1800. The money and the proceeds of the checks received were deposited in his father’s bank by defendant in his name, as clerk for Specht, the deposit at all times standing in the name of "Hugh E. Paddock, clerk for Frank Specht.” The checks that he received at the sale and which were payable to Specht were indorsed by him, “Frank Specht, H. F. Paddock, clerk,” before their proceeds were deposited by him. He paid the auctioneers their charges for auctioneering the sale shortly after the sale. He also paid Albert Specht, at the direction of Frank Specht, out of the same fund, the amount of money that was due Albert for certain articles belonging to him that were sold at the same sale. . Some of the notes that were taken in the name of Specht were turned in to the bank on the day of the sale and were kept for Specht in an envelope, and they were thus deposited in the bank as a special deposit. Some of the notes were not made out by the parties who owed Specht until several days after the sale, and one for about $140 had not been delivered to defendant at the time the bank closed on December 30, 1920. The fact that these notes were not brought in delayed a settlement between defendant and Specht, and for this reason no settlement was made up to the time the bank closed and was taken over by the trustee in bankruptcy. Specht had been running an account at this same bank and was in need of funds before a final settlement could be made. On his statement to defendant to that effect, he at the direction of defendant drew on the bank for what money he needed. The bank’s books showed that Specht thus drew a check for $175.58 on December 16, and that he had drawn a total of $245.58, and his account was overdrawn in that amount when the bank closed. The evidence discloses that defendant owed Specht at the time the bank closed $1361, but he had not been paid anything by Specht for his services at the sale.

There is a direct conflict as to some of the facts in the record between the testimony of Frank Specht and the defendant. Upon those controverted facts the defendant testified substantially as follows: Specht told him at the close of the sale to take everything he had in the way of money, checks and notes to the bank and pay the bills, meaning the bills of the auctioneers and others (besides Specht) who had claims against these funds. There were still a good many outstanding accounts made at the sale to be collected, and defendant took the money and checks to the bank and deposited them. After the sale he collected other moneys due and deposited them in the bank in his account as aforesaid. The reason he deposited the funds in his name as agent was to enable him to pay bills and draw checks against such funds as clerk or agent. About December 18, 1920, Specht came into the bank and asked him how things were going as to the sale, and he informed him that some of the purchasers were a little slow; that one note had not yet been returned to him and that a few accounts had not been paid. Nothing was said by Specht at that time about a settlement between them. He again saw Specht on December 21, 1920, at Egert’s sale, and told him to see the man who had not brought in his note and to hurry him up, and Specht reported later that he saw the man and that he would mail his note to the defendant. About December 28 or 29 Specht again came into the bank and asked defendant if he had received the note, and on being informed that he had not, said that he would like to get things balanced up so that he could pay his rent. Defendant told Specht that just as soon as he got that note and two or three other items they could balance the books easily, and that Specht did not then say anything about a settlement. On January 2, after the bank was closed, Specht and B. J. Egert, the latter of whom appears to be a party for whom defendant had conducted a sale, came in to see defendant about their accounts with him. He told Specht, in the presence of Egert and others, that Specht’s notes were all right and were there in an envelope. He never at that time told Specht that his money was separate from the money in the bank, or that he and Egert need not worry as he had their money in his own hands, or anything to that effect. He also testified positively that he never took or used any of Specht’s money for his own use and was not guilty of embezzling any part of the same.

Upon the same controverted questions Specht testified: On the evening of the sale he told defendant to pay Robert Wayne, one of the auctioneers, out of the money collected by him, and that nothing was said about the balance of the money in defendant’s hands. He did not ask defendant for the money and knew that he had it. He did not tell him to take the money and put it in the bank and pay the different bills. He never gave him authority to pay Deviney, the other auctioneer, but he deducted the amount defendant paid Deviney, and all other amounts he paid out of the funds deposited, in their settlement after the bank closed, and never made any complaint to him about making such payments. On the 17th or 18th of December, and after the sale, he had a conversation with defendant at the bank and told him that he needed the money and asked for a settlement. Defendant said to him: “If you need some money, go ahead and check it; we will settle up later; there is one note out, and when that comes in we will settle.” Specht accordingly drew checks on the bank for what money he wanted but did not know the amounts that he drew out. On December 29, the day before the bank closed, he saw defendant at the bank. He went there for a settlement. Defendant said for him to come in Monday and he would settle, and that there was still one note out. He and Barney Egert went to the bank on Sunday, after it closed.

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Bluebook (online)
133 N.E. 240, 300 Ill. 590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-paddock-ill-1921.