The People v. Swets

182 N.E.2d 150, 24 Ill. 2d 418, 1962 Ill. LEXIS 625
CourtIllinois Supreme Court
DecidedMarch 23, 1962
Docket36295
StatusPublished
Cited by34 cases

This text of 182 N.E.2d 150 (The People v. Swets) 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
The People v. Swets, 182 N.E.2d 150, 24 Ill. 2d 418, 1962 Ill. LEXIS 625 (Ill. 1962).

Opinion

Mr. Justice Klingbiel

delivered the opinion of the court:

After trial by jury in the criminal court of Cook County, Clarence Swets was found guilty of selling an automobile held under a trust receipt transaction and wilfully failing to pay the amount due under the trust receipt, in violation of section 18.01 of the Uniform Trust Receipts Act (Ill. Rev. Stat. 1957, chap. 121 par. 183.1). He was sentenced to the penitentiary for a term of not less than one year nor more than three. He has sued out this writ of error to review the judgment, contending that the evidence is insufficient, that improper argument by the State’s Attorney deprived him of a fair trial, and that the statute under which he was convicted is unconstitutional.

The evidence shows that defendant was a used car dealer with sales lots in Calumet City and Lansing, Illinois. He also operated an auction lot in Lansing. He purchased many of his cars by financing them with Universal C.I.T. Credit Corporation through the use of trust receipts. Under the terms of these instruments defendant had the liberty of sale and was obliged to account to Universal for the proceeds. They further recite that Universal holds a security interest for the amount of the indebtedness shown, and that the chattels shall be kept at defendant’s address until the indebtedness is paid.

According to the practice of the parties as described by Universal’s district manger, when defendant desired to finance the purchase of a car or cars for resale he would advise Universal by telephone of the description of the car and the amount he wanted to borrow. The company checked on the application, using the Automobile Red Book to ascertain the loan value, and if everything was in order approval was given. Defendant would then enclose & sight draft with a completed trust receipt inside the sight drá-ft envelope, and deposit the sight draft in his bank account much the same as a check would be deposited. After the sight draft cleared through the Federal Reserve Bank in Chicago, Universal would receive a call from its bank, and Universal would check its records to see if it was an approved sight draft. If it was approved Universal would take a check to the local bank and pay for the sight draft, whereupon the trust receipt “was then our document giving evidence that we had extended credit to Swets’ Motor Sales.”

On April 3, 1958, defendant had some 186 cars, of which about 60 or 70 were on trust receipts with Universal C.I.T. For about a year and a half the automobile industry had been going through a recession during which the market on used cars dropped substantially. On that date an employee of Universal C.I.T. made one of his periodical checks of defendant’s inventory and found upon preliminary examination that about 25 cars were missing. When asked about this, defendant suggested they have lunch and talk about the cars when they finished.

During lunch he made a phone call to his office and told his men to move all the automobiles out to a farm. After lunch, when Universal’s employee suggested going back to finish the checking, defendant told him the cars were gone. According to the checker’s testimony, when he inquired why and where the cars had been moved Swets replied “Well, let’s just say I rolled C.I.T.” In subsequent conversations with Universal’s district manager and its branch supervisor, defendant refused to return the automobiles or disclose their whereabouts. The district manager testified that defendant told him he was going to sell the cars and use the money to keep himself in business, and would pay “as he was able to.” The Chicago division manager for C.I.T. testified that on April 7, when he saw Swets at his place of business, the latter said he had hidden the cars and was going to “roll” C.I.T., sell the cars and dispose of the money as he saw fit.

Among the cars on defendant’s lot the morning of April 3 was a certain 1957 Cadillac coupe de ville under trust receipt to Universal C.I.T. in the sum of $3100. When the company’s checker returned in the afternoon this automobile, together with others, had been removed. On April 8 defendant sold it, together with certain other cars not under trust receipts, for an undisclosed consideration. He did not account to C.I.T. for the proceeds. Defendant’s acts with respect to this car form the subject of the present prosecution, the indictment alleging that he “then and there unlawfully, feloniously and wilfully failed to pay to said Universal C.I.T. Credit Corporation, the amount due said Universal C.I.T. Credit Corporation under said Trust Receipt.”

The statute declares that “Where under the terms of a trust receipt transaction the trustee has no liberty of sale or other disposition or having liberty of sale or other disposition is to account to the entruster for the proceeds of any disposition of the goods, documents or instruments and where the trustee disposes of the goods, documents or instruments and wilfully and wrongfully fails to pay the entruster the amount due under the trust receipt, he is guilty of a felony and shall be imprisoned in the penitentiary for not less than one year nor more than 10 years.” (Ill. Rev. Stat. 1957, chap, iziyí, par. 183.1.) To sustain his contention that he was not proved guilty beyond a reasonable doubt defendant says there is no evidence of criminal intent. The position is without merit. It is not denied that he concealed the car in question, together with others under trust receipts, and repeatedly refused to return them or reveal their location. Testimony to statements by defendant of intention to “roll” C.I.T. and to dispose of the money from the cars as he saw fit is ample evidence of wilfullness. Although disputed by defendant, such testimony is a sufficient basis from which the jury could find an unlawful intent, especially when considered in connection with his undisputed conduct. Questions of credibility, of course, are for the jury.

Defendant also argues that by attaching his bank accounts Universal prevented him from performing his obligation under the trust receipt. The argument cannot be accepted. It is based on a mere conclusion, and fails to establish inability to pay. The evidence shows that the proceeds of the sale in question were neither turned over to Universal nor deposited in defendant’s bank account but were given to his sister.

The next contention is that the State’s Attorney’s argument denied defendant a fair trial. In the remarks complained of, the prosecutor illustrated a point by referring to a hypothetical case of theft. He also said he supposed that the money defendant allegedly would obtain “would be tax free if he didn’t get caught.” And in a third comment the prosecutor observed that a lot of people were watching the case “and if Swets can get away with it there are a lot of sharpies that will figure they can and they’ll try it.” In each instance defendant’s objection was sustained. While the comments exceeded the bounds of propriety, we do not think that under the circumstances of this case they were sufficiently prejudicial to call for a reversal.

Where it appears that improper remarks do not constitute a material factor in the conviction, or that they are of such a minor character that prejudice to defendant is not their probable result, the verdict will not be disturbed. (People v. Berry, 18 Ill.2d 453.) Such is the case here.

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

Related

People v. Johnson
803 N.E.2d 405 (Illinois Supreme Court, 2004)
People v. Bobe
592 N.E.2d 301 (Appellate Court of Illinois, 1992)
Pflugmacher v. Cosentino
519 N.E.2d 1123 (Appellate Court of Illinois, 1988)
People v. Smylie
431 N.E.2d 1130 (Appellate Court of Illinois, 1981)
People v. Spann
422 N.E.2d 1051 (Appellate Court of Illinois, 1981)
People v. Sanchez
420 N.E.2d 680 (Appellate Court of Illinois, 1981)
People v. Rose
395 N.E.2d 1081 (Appellate Court of Illinois, 1979)
People v. Bach
393 N.E.2d 563 (Appellate Court of Illinois, 1979)
People v. Singletary
391 N.E.2d 440 (Appellate Court of Illinois, 1979)
People v. Mumford
387 N.E.2d 910 (Appellate Court of Illinois, 1979)
People v. Anderson
382 N.E.2d 866 (Appellate Court of Illinois, 1978)
People v. Ross
377 N.E.2d 230 (Appellate Court of Illinois, 1978)
People v. Smith
368 N.E.2d 561 (Appellate Court of Illinois, 1977)
People v. Watson
365 N.E.2d 95 (Appellate Court of Illinois, 1977)
People v. Banks
331 N.E.2d 561 (Appellate Court of Illinois, 1975)
People v. Davis
310 N.E.2d 682 (Appellate Court of Illinois, 1974)
People v. Adam
304 N.E.2d 711 (Appellate Court of Illinois, 1973)
People v. Tolefree
303 N.E.2d 555 (Appellate Court of Illinois, 1973)
People v. Clark
288 N.E.2d 363 (Illinois Supreme Court, 1972)

Cite This Page — Counsel Stack

Bluebook (online)
182 N.E.2d 150, 24 Ill. 2d 418, 1962 Ill. LEXIS 625, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-people-v-swets-ill-1962.