State v. Schifani

584 P.2d 174, 92 N.M. 127
CourtNew Mexico Court of Appeals
DecidedAugust 8, 1978
Docket3470
StatusPublished
Cited by26 cases

This text of 584 P.2d 174 (State v. Schifani) 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. Schifani, 584 P.2d 174, 92 N.M. 127 (N.M. Ct. App. 1978).

Opinion

OPINION

WOOD, Chief Judge.

The evidence shows that, as a part of a continuing scheme, defendant obtained money, or checks which he cashed, from the victims and used the money for his own purposes. Convicted of two counts of fraud (Counts I and III), and one count of embezzlement (Count II), defendant appeals. We discuss: (1) severance and (2) Evidence Rule 404(b). Other issues argued (some were abandoned, State v. Evans, 89 N.M. 765, 557 P.2d 1114 (Ct.App.1976) go to the sufficiency of the evidence. In answering the evidentiary claims, we discuss: (3) defendant’s use of promissory notes in connection with all counts; (4) the victims’ illegal conduct in connection with all counts; (5) defendant’s representations in connection with the frauds; and (6) ownership of the checks, conversion and repayment in connection with the embezzlement.

Severance

Each of the three counts charged fraud, or in the alternative, embezzlement. A pretrial motion sought “to separate and bifurcate each count into separate trials”. At a pretrial hearing on this motion, the only argument went to the propriety of alternative pleading. See State v. Ortiz, 90 N.M. 319, 563 P.2d 113 (Ct.App.1977); State v. Gurule, 90 N.M. 87, 559 P.2d 1214 (Ct.App.1977). The motion was continued; there was no ruling on the motion prior to trial.

After the jury was sworn, defendant moved that the State be required to elect on which count it would proceed. This motion was denied. In arguing the motion to elect, defendant also argued that the three counts should be severed. Assuming that this argument alerted the trial court to the severance claim, and assuming the trial court’s denial of the motion to elect was also a denial of a motion to sever, we consider the severance claim on the merits.

This issue involves the severance of counts against a single defendant. The applicable rule is Rule of Crim.Proc. 34(a) which authorizes severance “[i]f it appears that a defendant . . may be prejudiced”. This rule “leaves the decision to grant or deny a separate trial largely in the hands of the trial court.” State v. Rondeau, 89 N.M. 408, 553 P.2d 688 (1976). The appellate issue is whether the trial court abused its discretion in denying the motion to sever. State v. McGill, 89 N.M. 631, 556 P.2d 39 (Ct.App.1976).

Defendant points out that the three counts involved different victims and different dates for the offenses. He also points out that evidence of “other wrongs” was admitted under Evidence Rule 404(b). He asserts the verdicts against him were “unsound” because “not based on the evidence relating to any one charge but on a large volume of adverse evidence which would not have been sufficient to convict him in separate trials.”

We disagree. Substantial evidence supports each of the convictions. The “adverse evidence” admitted was relevant to each of the charges being tried. In reaching its verdicts, the jury followed the evidence and applied it to each count. The conviction under Count I was for fraud over $2,500 and not the alternative charge of embezzlement. The conviction under Count II was for embezzlement over $2,500 and not the alternative charge of fraud. The conviction under Count III was for fraud under $2,500 and not the alternative charge of embezzlement. State v. McGill, supra; State v. Sero, 82 N.M. 17, 474 P.2d 503 (Ct.App.1970).

The trial court did not abuse its discretion in denying the motion to sever.

Evidence Rule 404(b)

This evidence rule permits the admission of evidence of other wrongs to show, among other things, a defendant’s “intent” and “plan”. The trial court admitted the testimony of persons, other than the victims’ in the three counts being tried, who testified to dealings with defendant similar in nature to the victims’ dealings with defendant. This testimony was admitted to show defendant’s intent, and a common scheme or plan; the testimony was clearly relevant for that purpose. State v. McCallum, 87 N.M. 459, 535 P.2d 1085 (Ct.App.1975).

Defendant asserts that the prejudice from this testimony outweighed its usefulness in establishing any plan or scheme. This claim involves Evidence Rule 403; see State v. Day, 91 N.M. 570, 577 P.2d 878 (Ct.App.1978). When the trial court has applied the balancing approach required by Evidence Rule 403, the appellate issue is whether the trial court has abused its discretion. State v. Fuson, 91 N.M. 366, 574 P.2d 290 (Ct.App.1978). In determining whether discretion was abused, we consider the probative value of the testimony. The probative value of the “other wrongs” testimony was significant because it tended to negate defendant’s claim that his transactions with the three sets of victims in this case were no more than loans. There was no abuse of discretion in admitting the “other wrongs” testimony.

Defendant’s Use of Promissory Notes

In the two fraud offenses, defendant obtained money from the victims; in the embezzlement offense, defendant obtained checks from the victims and later cashed them. Throughout, defendant gave the victims promissory notes in an amount equal to the money or checks, plus the monetary amount of a promised return.

Defendant asserts the promissory notes show commercial transactions in which he borrowed money, evidenced by the promissory notes given. This contention overlooks the evidence to the contrary. The fraud victims testified the money defendant received from them was for investment purposes. There was evidence that the promissory notes given to the embezzlement victims included “tremendous profits” over and above the amount of the checks.

With conflicting evidence whether the money and the checks were loans, or were for investments, was for the jury to decide.

Victims’ Illegal Conduct

In connection with Counts I and II defendant infers, and in connection with Count III defendant specifically claims, that usurious interest was involved. This contention is based on the amount of the various promissory notes over and above the money, or the amount of the checks received, by defendant.

Defendant seems to contend that the victims’ willingness to obtain usurious interest somehow mitigates his conduct. “[T]he great weight of authority holds appellant [defendant] amenable, regardless of the fact that his victim was himself ready and willing to commit an offense.” State v. Foster, 38 N.M. 540, 37 P.2d 541, 95 A.L.R. 1247 (1934).

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Bluebook (online)
584 P.2d 174, 92 N.M. 127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-schifani-nmctapp-1978.