State v. Niehoff

395 S.W.2d 174, 1965 Mo. LEXIS 670
CourtSupreme Court of Missouri
DecidedNovember 8, 1965
Docket51084
StatusPublished
Cited by27 cases

This text of 395 S.W.2d 174 (State v. Niehoff) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Niehoff, 395 S.W.2d 174, 1965 Mo. LEXIS 670 (Mo. 1965).

Opinion

HOLMAN, Judge.

The defendant, Leonard Niehoff, was charged with stealing property having a value of at least $50, to wit, “Fourteen Thousand One Hundred Dollars,” from Verna Lenau. The offense alleged was of the type which would have been classified as embezzlement prior to the enactment of our revised stealing statutes in 1955. See Sections 560.156 and 560.161, RSMo 1959, V.A.M.S. The jury returned a verdict of guilty and fixed defendant’s punishment at imprisonment in the penitentiary for a term of ten years. Defendant has appealed from the ensuing judgment.

The evidence adduced will support the following statement of facts: In 1954 defendant and Henry Mohr incorporated the Reliance Real Estate Company. During the time in question Mr. Mohr was vice president and secretary of the corporation and owned 30% of the stock. Defendant was president and it may be inferred that he owned substantially all of the remainder of the stock. The company maintained two offices in the City of St. Louis with Mohr in charge of what was called the North Office and defendant in charge of the South Office. The principal business of the corporation was the sale of real estate for customers on a commission basis. In addition to eight office employees, Reliance had approximately fifty salesmen, many of whom were paid a stated sum every two weeks upon a drawing account. As a general rule Reliance closed from 30 to 35 sales each month involving properties having a total value of approximately $350,000.

*177 In the fall of 1963 Angelo and Irene Branca listed their home for sale with Reliance. Miss Verna Lenau, a manicurist at the Park Plaza Hotel, desired to buy a home and upon seeing the Branca property advertised contacted Miss Wanersten, an agent of Reliance, concerning same. After looking at the house, Verna agreed to purchase it for $15,000. The parties signed a sales contract and Verna delivered an earnest money check for $900 to Reliance. Verna went to the office of Reliance on December 5, 1963, for the purpose of closing the transaction and there dealt with defendant. She gave him a cashier’s check payable to Reliance for $14,100. She stated that she wanted to obtain title insurance and a home owners’ insurance policy and paid defendant an additional sum of $256 to cover the cost of the insurance and other items. Defendant told her that the insurance could not be obtained for a few days and that the closing of the transaction would thus he delayed. After a few days Verna apparently became disturbed about the situation. She thereafter telephoned defendant each day for the next fourteen days, but was unable to obtain a deed to the property she had purchased. She employed an attorney who contacted defendant and they agreed upon a meeting at 1 o’clock p. m. on January 10,1964, at the Missouri Title Company for the purpose of closing the transaction. Verna, her attorneys, and the Brancas were present at that time and place but defendant did not appear and the transaction was not closed. Verna’s money was never returned to her and she did not receive title to the property.

In early January 1964 Reliance received some unfavorable publicity and its offices were closed about January 8. A receiver was appointed on February 10, 1964. There was considerable evidence indicating that Reliance was in bad financial condition during 1963 and that defendant resorted to desperate measures in order to keep the company operating. Reliance had a trust account in the North Side Bank which was used solely by the North Office. All transactions were closed in the South Office and at the time of the closing the earnest money payment in the North Office trust account was transferred to the South Office. The main bank account of Reliance was in the Clayton Bank. Substantially all receipts of the corporation were deposited in that account, and all expenses were paid therefrom until the account was closed by the bank in the latter part of 1963. All disbursements from the account were approved by defendant. At the time defendant deposited Verna’s check for $14,100 in the Reliance bank account, the account, according to the checkbook, was overdrawn to the extent of $8,282, and defendant knew of that situation. It was not at all unusual for the Reliance bank account to be overdrawn.

Defendant had a personal account in the American National Bank. In order to obtain temporary credit in the Reliance bank account defendant engaged in a practice referred to as check “kiting.” To accomplish this he would draw a check in a large sum upon his personal account payable to Reliance and this would be deposited in the Reliance account. He would then direct that a check be drawn on the Reliance account in the same amount payable to him and that check would then be deposited in his personal account. Because of the time required in clearing the checks, this was described as amounting to a four-day loan for the benefit of Reliance. The checks written in the “kiting” process for the period of June through October 1963, were as follows: June, $38,000; July, $55,000; August, $88,000; September, $221,-000; and from October 1 to 17, $440,000. Because of this “kiting” practice the Clayton Bank closed the Reliance account in the latter part of October, and the American National Bank requested that defendant close his personal account at about the same time. Defendant then took charge of what had been the trust account in the North Side Bank and it thereafter became the bank account of Reliance.

In order to cover the outstanding checks at the time the account was closed at the *178 Clayton Bank defendant directed that a cashier’s check for $14,000 be delivered to that bank. That money was obtained from the proceeds of the sale of property located at 2341 Esther Street for which the seller never received the money due him. Defendant gave a similar cashier’s check for $1,156 to American National to cover checks that had been written upon his personal account.

When the account was closed in the North Side Bank on January 8, 1964, it was overdrawn in the amount of more than $19,000. It was also shown in evidence that there were ten transactions in which property was sold wherein defendant received the purchase price, and in which the seller never received the amount due for the sale of his property. The amount involved in those transactions was more than $100,000.

It was developed on cross-examination of the bookkeeper for Reliance that the corporation had accounts receivable of almost $200,000 ($115,000 of that amount having been advanced to agents upon drawing accounts), many items of which were eight to ten years old and uncollectible. There was evidence to indicate that the collectible assets of Reliance did not total more than a few thousand dollars.

Angelo and Irene Branca both testified that they were ready and willing at all times to transfer title to Miss Lenau but did not do so because they never received the portion of the purchase price due them. Mrs. Branca testified that she called defendant twice in December in an effort to get the deal closed, and on one occasion when defendant said he had to attend a meeting offered to wait for him at their home until midnight if necessary. She stated that they had a warranty deed prepared and executed and took it to the January meeting so as to be prepared to convey title to Miss Lenau in the event they received the purchase price.

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Bluebook (online)
395 S.W.2d 174, 1965 Mo. LEXIS 670, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-niehoff-mo-1965.