Document: 336 U.S. 505 69 S.Ct. 704 93 L.Ed. 845 UNITED STATESv.KNIGHT. No. 406. Argued March 4, 1949. Decided April Mr. Philip R. Monahan, of Washington, D.C., for the United states. Robert T. McCracken, Philadelphia, Pa., respondent. Justice DOUGLAS delivered opinion Court. 1 Michael was trustee in bankruptcy Central Forging Co. and Donald Reifsnyder his counsel. Maxi Manufacturing a competitor one its creditors. George Fenner respondent Harry S. Knight were attorneys Maxi. After negotiations which it is unnecessary to relate here, plan reorganization under ch. X Bankruptcy Act 52 Stat. 883, 11 U.S.C. § 501 et seq., U.S.C.A. approved by court accepted more than two-thirds Under this acquire all assets Central; stockholders receive nothing; secured creditors 20 per cent unsecured 5 their claims bonds Maxi; taxes, costs, expenses be paid full cash trustee. The requirements furnished 2 amount those nature Maxi's commitment are sources present controversy. concededly obtained funds connection with they did not account. It theory prosecution that part estate. defense gifts own property. 3 There evidence (including Michael's testimony case construction respondent's concerning same transactions an earlier contempt against Michael) agreed pay $26,404.33 Central's net current addition $17,000 bonds. If version transaction believed, there scheme value at $3,000 less divert Reifsnyder's ends. 4 another phase also supported evidence, viz. provided exceed $26,404.33. In view difference between allowed Court, $23,404.33, do as pleased. confirmed ordered transfer on receipt payment costs court, 'within imits set forth Trustee's report filed 15, 1942.' That listed $23,404.33. some had been falsified deducting from accounts receivable. 6 included allowances fees Reifsnyder. arranged draw check cashed and, after $500 income tax, over who never accounted it. 7 indicted aiding abetting appropriate property estate violation Act, 30 554, amended, 52(a),1 conspiring others same. found guilty jury counts. fined $1,000. Court Appeals reversed conviction directed entry judgment acquittal, judge dissenting. 169 F.2d 1001. here petition certiorari we granted because importance ruling administration Act. 8 substantial party consideration personal ends therefore improper interference jury's function lower reject accept seemed credible. See Glasser v. States, 315 60, 80, 62 457, 469, 470, 86 680; Kotteakos 328 750, 763-764, 66 1239, 1247, 1248, 90 1557. 9 But even if, urges, only up $26,404.33, result fact amount. reorganization. services allegedly rendered proceedings. secretly devious way. transferred worth This showing form arrangement served syphon without approval. 10 All bankrupt's becomes No device or arrangement, however subtle, can subtract any substance controls. requirement rigidly enforced, control reorganization2 allowances,3 would pass parties. subvert statutory scheme. consequence sought avoided argument when diverted Reifsnyder, rights fixed determined. said have no rightful claimants money into court. By procedure parties woul arrogate themselves Congress has entrusted judge.4 12 Reversed. 13 MURPHY, JACKSON, RUTLEDGE took decision case. 14 FRANKFURTER, 15 Appeals, speaking through most conscientious experienced judges, thus summarized problem case: 16 'The whole highly reprehensible may well involved commission criminal offense. Indeed indictment defendant pleaded charge growing out these occurrences. question before us, however, whether committed crime but he aided abetted violate Section 29, sub. a, manner described indictment.' 1001, 1005. 17 concluded support charges made motion verdict should granted. At bar Government disavowed presence law except record warranted submission District thought, thought not. conceded unreservedly correctness turns entirely facts particular We ought called upon canvass 870 pages determine properly viewed relation charge, appraisal right. I propose so. One appellate review suffice, goes Government. 18 having appeared, writ granted, merely involves weighing think dismissed improvidently 'A person shall punished imprisonment period five years fine $5,000, both, offense knowingly fraudulently appropriated use, embezzled, spent, unlawfully secreted destroyed document belonging bankrupt came trustee, receiver, custodian, marshal, other officer court.' (See Revised Criminal Code, 153). Even confirmation 221 X, altered modified pursuant prescribed 222. §§ 241—244 X; Leiman Guttman, 1, 371. note 2, supra.

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