State v. Deutsch

713 P.2d 1008, 103 N.M. 752
CourtNew Mexico Court of Appeals
DecidedDecember 31, 1985
Docket8355
StatusPublished
Cited by19 cases

This text of 713 P.2d 1008 (State v. Deutsch) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Deutsch, 713 P.2d 1008, 103 N.M. 752 (N.M. Ct. App. 1985).

Opinion

OPINION

WOOD, Judge.

This appeal involves convictions and sentences of Deutsch for conspiracy, larceny, fraud, embezzlement and forgery in two criminal cases — Bernalillo County District Court Cause Nos. 37206 and 37738. We (1) state the factual background; and discuss (2) enforcement of a plea bargain; (3) the prosecutor’s allegedly late disclosures; (4) interception of Deutsch’s personal mail; (5) testimony from Deutsch’s attorneys; (6) testimony of a questioned documents examiner; and (7) sufficiency of the evidence for the forgery convictions.

FACTUAL BACKGROUND

Deutsch was the sole stockholder of E.F.D. Capital Group, Inc., a New York corporation (EFD). In the spring of 1983, EFD purchased all the stock of two New Mexico corporations, Continental Mortgage, Inc. (Continental), and Guaranteed Equities, Inc. (Guaranteed). According to Deutsch, Continental and Guaranteed were operated as a single mortgage brokering business. According to Deutsch, “all three corporations were treated as the sole proprietorship of Deutsch commencing in or about May, 1983.”

In the summer of 1983, the Financial Institutions Division of the Regulation and Licensing Department (FID) investigated financial activities involving Guaranteed. On August 19, 1983, FID brought a civil suit in Santa Fe County District Court seeking various items of relief. A temporary solution was negotiated. An order was entered September 26, 1983, which, among other things, appointed Harold Douglass as trustee of Guaranteed.

On September 28, 1983, the indictment in Cause No. 37206 was filed. The indictment named Deutsch and Continental as defendants and charged both conspiracy to commit fraud and fraud. Both Deutsch and Continental entered plea agreements. Deutsch’s agreement, dated September 29, 1983, provided that no additional criminal charges would be filed relating to any past criminal activity involving Deutsch, Continental, Guaranteed, EFD, or affected companies in connection with the conduct of those businesses in New Mexico, their assets, liabilities and contracts.

On February 14, 1984, the indictment in Cause No. 37738 was filed. The indictment named Deutsch as a defendant and charged various crimes in seventeen counts. All counts charged criminal activity subsequent to the plea agreement of September 29, 1983. Two of the charges were dismissed; Deutsch was convicted of fifteen counts.

The transactions involved in the fifteen convictions in Cause No. 37738 are:

(a) Eloy Romero loan. The loan was refinanced. An Omega Funding Corporation (Omega) check in the amount of $31,240.44 was made payable to Guaranteed. This check was endorsed with the name of Guaranteed and the initials “F.D.” On the basis of this endorsement of Omega’s check, First Interstate Bank issued its cashier’s check in the same amount, payable to Guaranteed. The cashier’s check was endorsed in the name of Guaranteed, “F. Deutsch, president” and was cashed at a truck plaza in New Jersey. Deutsch was convicted of larceny of the Omega check, forgery on the basis of the endorsement of the Omega check, and forgery on the basis of the endorsement of the cashier’s check. These were counts Nos. 1, 2 and 3.

(b) Canaday loan. Attorneys Prelo and Grodner foreclosed this loan on behalf of Guaranteed. At a foreclosure sale, Guaranteed bought the property securing the loan. Canaday found a buyer to redeem the property and Guaranteed agreed to sell to the buyer. Prelo and Grodner handled the matter; they issued their trust account check, in the amount of $40,155.43, payable to Guaranteed. Deutsch picked up the check from Prelo. The check was endorsed in the name of Guaranteed, “Frank Deutsch, pres.” and was cashed at the truck plaza in New Jersey. Deutsch was convicted of fraud and forgery. These were counts Nos. 4 and 5.

(c) Garcia and Rael loans. When Grodner (see (b) above) noticed the endorsement on the trust account cheek, he questioned Deutsch about it. Deutsch said he would straighten things out and later gave Grodner three checks. Two of these three checks involved the Garcia and Rael loans. Omega issued its check for $22,592.80, payable to Guaranteed, as a pay-off of the Garcia loan. The Omega check was endorsed in the name of Guaranteed, “F. Deutsch, Pres.” and exchanged for a New Mexico Federal Savings & Loan Association (N.M. Federal) check in the same amount. Deutsch delivered the N.M. Federal check to Grodner as part of the pay-off of the Canaday loan. Deutsch was convicted of embezzlement and forgery in connection with the Omega check. These were counts Nos. 13 and 14. Tucumcari Federal Savings & Loan Association issued its check in the amount of $13,956.68, payable to Guaranteed, as a pay-off of the Rael loan. Deutsch delivered this check to Grodner as part of the pay-off of the Canaday loan. Deutsch was convicted of larceny of this check. This was count No. 15.

(d) Haws loan. A bank in California issued its check in the amount of $22,749.73 to pay off this loan. The check was payable to Guaranteed, “Harold Douglass Trustee.” The check was endorsed in the name of Guaranteed and in the name of the trustee, “H. Douglass, Trustee,” and underneath the purported Douglass signature, “F. Deutsch Pres.” The check was cashed at the truck plaza in New Jersey. Deutsch was convicted of larceny and forgery. These were counts Nos. 6 and 7.

(e) Torres loan. Torres had overpaid his loan and wanted reimbursement for the overpayment. The records of the trustee did not show that the loan had been paid off. Territorial Abstract & Title Co., Inc. (Territorial) had handled the transaction. The trustee checked with Territorial; it provided the documentation. The exhibit, which is an attachment to another exhibit, is of poor quality and is difficult to read. However, there was testimony that Territorial had issued its check No. 6247 in the amount of $12,398.00 payable to Guaranteed. The check had been endorsed in the name of Guaranteed, “F. Deutsch, Pres.” and was cashed at the truck plaza in New Jersey. Deutsch was convicted of larceny and forgery. These were counts Nos. 8 and 9.

(f) Radaelli loan. Omega issued its check in the amount of $89,005.00 as a pay-off of this loan. The check was payable to Guaranteed. The Omega check was endorsed in the name of Guaranteed, “F. Deutsch, Pres.” and exchanged for a N.M. Federal check payable to Guaranteed. The N.M. Federal check was endorsed in the name of Guaranteed, “F. Deutsch, Pres.” and was cashed at the truck plaza in New Jersey. Deutsch was convicted of embezzlement and two counts of forgery. These were counts Nos. 10, 11 and 12.

The foregoing outlines the transactions and the convictions in Cause No. 37738, There is evidence that Deutsch lacked authority to negotiate checks payable to Guaranteed during the time period involved. There is evidence that Deutsch executed releases on deeds of trust given in connection with some of the loans, but was without authority to do so. There is testimony from Mr. Yudis, who arranged the check cashing in New Jersey, about Deutsch’s promise to “arrange” a vacation for Yudis so that he could avoid testifying. Yudis was subpoenaed and testified under a grant of immunity.

Deutsch does not challenge the sufficiency of the evidence for his larceny, fraud and embezzlement convictions in Cause No.

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Cite This Page — Counsel Stack

Bluebook (online)
713 P.2d 1008, 103 N.M. 752, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-deutsch-nmctapp-1985.