Opinion ID: 366306
Heading Depth: 1
Heading Rank: 3

Heading: Misapplication Case

Text: 59 In the bank misapplication case, defendant Duncan was convicted of six violations of 18 U.S.C. § 656. That statute provides in pertinent part: 60 Whoever, being an officer, director, agent or employee of, or connected in any capacity with any . . . insured bank . . . willfully misapplies any of the moneys, funds or credits of such bank or any moneys, funds, assets or securities intrusted to the custody or care of such bank . . . shall be fined not more than $5,000 or imprisoned not more than five years, or both . . . . 61 As used in this section, the term . . . insured bank includes any bank, banking association, trust company, savings bank, or other banking institution, the deposits of which are insured by the Federal Deposit Insurance Corporation. 62 That both defendant and the Northwestern Bank possess the requisite capacities for a violation of § 656 to occur is conceded. Little else is. 63 For a violation of § 656 to be proved, the Government must show, in addition to the status of both bank and defendant, that the defendant acted willfully, that he misapplied funds, moneys, or credits belonging to or intrusted to the custody of the bank and that he did so with the intent to injure or defraud the bank. While the statutory language no longer makes reference to the last mentioned element, it remains a necessary part of the Government's proof. United States v. Caldwell, 544 F.2d 691, 696 (4th Cir. 1976). 64 To show a misapplication, the Government must prove a conversion of bank funds to the use of the defendant or a third party. Johnson v. United States, 95 F.2d 813, 816 (4th Cir. 1938). Actual loss need not be proved, E. g., United States v. Fortunato, 402 F.2d 79, 81 (2d Cir. 1968); Rakes v. United States, 169 F.2d 739, 743 (4th Cir. 1948); rather, it is sufficient that the defendant at least temporarily deprive the bank of the possession, control or use of its funds. While subsequent restitution may be relevant on the issue of intent, it is not a defense since the crime is complete when the misapplication occurs. Agnew v. United States, 165 U.S. 36, 56-57, 17 S.Ct. 235, 41 L.Ed. 624 (1897); Kramer v. United States, 190 F.2d 712, 719 (4th Cir. 1951).
65 Defendant opens his attack upon these convictions with a challenge to the indictments. Arguing that the term misapply has no settled meaning, United States v. Britton, 107 U.S. 655, 669, 2 S.Ct. 512, 27 L.Ed. 520 (1882), and relying on this Court's decision in Johnson v. United States, 95 F.2d 813 (4th Cir. 1938), he contends that no criminal conduct is charged against him. 66 In Britton, the Supreme Court, construing one of the predecessor statutes of § 656, noted: 67 The words wilfully misapplied are, so far as we know, new in statutes creating offences, and they are not used in describing any offence at common law. They have no settled technical meaning like the word embezzle as used in the statutes, or the words steal, take and carry away, as used at common law. They do not, therefore, of themselves fully and clearly set forth every element of the offense charged. It would not be sufficient simply to aver that the defendant wilfully misapplied the funds of the association. 68 107 U.S. at 669, 2 S. Ct. at 524. The Court went on to require that averments be made to show how the application was made and that it was unlawful. Id. 69 Our decision in Johnson is of the same mold. In that case the indictment simply charged the president of a bank with discounting a note made by one Stover and applying the proceeds of the note against an overdraft of the defendant's account at the bank. While it appears that in fact Stoner was insolvent so that the note was worthless, this was not alleged. Moreover, no allegation was made that the account was drawn upon after the proceeds from the note were deposited therein. In short, there was no allegation of conversion. Reiterating the principles announced in Britton, the Court concluded that no crime would be charged unless it was alleged that some portion of the fund credited (as a result of the deposit of the proceeds from the note) is withdrawn from the possession or control of the bank or a conversion thereof in some form is made so that the bank is deprived of the benefits thereof. 95 F.2d at 817. 70 Each of the six counts of the indictment against Duncan charged in the statutory language that defendant developed a scheme, with intent to injure and defraud the bank, to willfully misapply the funds of the bank. Each then went on to allege that defendant 71 would write and cause to be written checks upon his aforesaid personal checking account, when he then well knew that said checks would not be debited to his personal account, but held in the Bookkeeping Department of the aforesaid Bank; and that by this scheme, (defendant) did wilfully misapply and cause to be misapplied, and did convert to his own use the possession, control and use of the monies, funds, and credits of the aforesaid Northwestern Bank . . .. 72 Much water has flowed under the bridge since we rendered our decision in Johnson and even more since the Supreme Court declared in Britton that wilfully misapply had no settled meaning. The cases are legion interpreting those words. While an occasional decision still reiterates the message in Britton, the modern trend seems to recognize that the term has developed a settled meaning; they no longer are new in statutes creating offenses. United States v. Mann, 517 F.2d 259, 268 (5th Cir. 1975); United States v. Archambault, 441 F.2d 281, 283 (10th Cir. 1971); United States v. Fortunato, 402 F.2d at 81; United States v. Kernodle, 367 F.Supp. 844, 849 (M.D.N.C.1973) (Ward, J.), Aff'd per curiam sub nom. United States v. Pollard, No. 74-1368 (4th Cir. Sept. 23, 1974); See United States v. Moraites, 456 F.2d 435, 441 n.9 (3d Cir. 1972). But see United States v. Gens, 493 F.2d 216, 221 (1st Cir. 1974); United States v. Wiggenhorn, 312 F.2d 289, 292 (9th Cir. 1963). 73 Both Johnson and Britton were decided prior to the adoption of Rule 7 of the Federal Rules of Criminal Procedure which put an end to the niceties of technical pleading. United States v. Kernodle, 367 F.Supp. at 849. Today, an indictment need only allege the essential elements of the offense and adequately apprise the defendant of the charges against him so that he may prepare his defense. 74 While time and intervening events have sapped Britton and Johnson of much of the basis for their rationale, we believe the Duncan indictments pass muster even under their standards. The manner in which the misapplication was achieved is alleged in sufficient detail. Defendant was apprised of the charges against him and that aspect of the demands of Britton is satisfied. Despite defendant's strenuous contentions to the contrary, a conversion is alleged, both by use of that specific word and by description of the manner in which it was achieved. 16 Unlike Johnson, this is not a case where only an innocent transaction is alleged. When defendant's checks were paid without a coincident debiting of his account, the bank was deprived of the control of its funds. See Johnson v. United States, 95 F.2d at 817. The bank's funds having been put at risk, that aspect of Britton which requires allegation of acts sufficient to show the misapplication to be unlawful is satisfied. 75
76 Defendant contends that the manner in which he operated his bank account could not have constituted a misapplication of bank funds in violation of § 656, so that the proof on this essential element was insufficient to support his conviction. He relies here essentially on two theories that the district court rejected in various rulings. The first, in general, points to defendant's financial ability at all times to cover all his undebited checks held in cash items. The second would find authorization for the Code 3-cash items practice in nonaction by the bank's directors despite knowledge on their part of its existence. 77 Specifically, on the first theory, Duncan relies on evidence that at all times he had sufficient funds in the bank to cover his Code 3 checks held in cash items. He points first to the fact that only rarely was his checking account itself insufficient to cover them, I. e., in a state of technical overdraft. 17 Next he points to evidence that throughout the critical period he had access to other accounts in the bank and other sums immediately available for application to his checking account. 18 These latter sources in conjunction with his checking account, he contends, provided such absolute security to the bank that his practice, rightly understood, amounted to no more than a bookkeeping technique, and precluded as a matter of law any jury finding of misapplication within the statute's meaning. The district judge declined so to interpret the significance of this evidence in allowing the case to go to the jury and in declining to reject its verdict. We agree with this assessment. 78 As earlier noted, ultimate financial loss to the bank is not required for, nor will subsequent restitution exonerate from, a finding of statutory misapplication. The gist of this critical element of the offense is the withdrawal of funds, however temporarily, from the possession, control, or use of the bank. Id. Whatever the evidence might have shown of Duncan's ability and intention to provide ultimate security against actual loss to the bank, it also showed unmistakably that the challenged practice gave him non-interest bearing, unsecured loans in whatever amount he chose to write checks. It also removed from the various procedures designed to permit responsible ongoing auditing of the bank's financial condition any sums that he chose to deflect from immediate debiting to his account. That his checking account was not continuously in a state of even technical over-draft and that he was amply solvent during this period does not avoid the fact that from the bank's standpoint the funds represented by the undebited cash items checks were at a variety of risks turning completely on Duncan's inclinations and whim so long as they were concealed from normal monitoring procedures. This constituted misapplication of funds within the meaning of the statute. See United States v. Caldwell, 544 F.2d at 696-97; Cf. Benchwick v. United States, 297 F.2d 330 (9th Cir. 1961) (closely analogous practice; aiding and abetting). 79 Defendant also contends that no conversion could have occurred because the method in which he operated his account was authorized. The position of the trial court was that evidence of authorization was relevant to the issue of defendant's intent to defraud, but not on the question whether a conversion occurred. The jury was so instructed and defendant's requested instruction to the contrary was refused. 19 We believe this was a proper assessment of the relevance of this evidence. 80 Such a construction of the relevance of evidence of authorization is mandated by the purpose of § 656. As we recently stated, that purpose is to protect the assets of the Federal Deposit Insurance Corporation and of banks having a federal relationship. United States v. Arthur, 544 F.2d 730, 736 (4th Cir. 1976). 81 Defendant contends that since the Bank's board of directors knew how he operated his account, their acquiescence constituted sufficient authorization to preclude the occurrence of the conversion. Initially, we note that the evidence is far from consistent in respect of the directors' knowledge about defendant's checking account. It seems fairly certain that they had no idea how long defendant's checks were held in cash items and that the accumulated checks so held frequently exceeded in face value the balance in the account. In any event, even assuming the facts to be as defendant contends on this point, the directors' non-action here could not be held to preclude the existence of a conversion. While it is at least conceivable that under some circumstances a formally adopted resolution of a board of directors would carry with it sufficient procedural safeguards to protect the interest of the bank and of the Federal Deposit Insurance Corporation, a question we do not decide today, authorization by informal acquiescence certainly does not. If it did, a bank official would be able to use bank funds for his own benefit and continue to do so as long as the directors did nothing about it. Individual directors, concerned about full-time positions in other areas of commerce, might never direct full attention to the official's conduct. The official, if he had sufficient power, could stifle any attempt to bring the matter to the attention of the board. 20 In short, the purpose of § 656 would be sorely frustrated by the allowance of such a defense. 82 Defendant relies on United States v. Klock, 210 F.2d 217 (2d Cir. 1954) (Frank, J.), for the proposition that authorization precludes conversion. The opinion is ambiguous whether the authorization evidence, refused totally by the trial court, was relevant on the intent issue or on the conversion issue. To the extent the opinion can be read to make such evidence relevant on the issue of conversion, we decline to follow it, at least in circumstances such as are presented by this appeal. We note that Klock has been read to hold such evidence relevant only on the issue of intent. See United States v. Riley, 550 F.2d 233, 236-37 (5th Cir. 1977). The evidence was submitted here under proper instructions on the issue of defendant's intent to injure or defraud the bank, and was rejected by the jury. 83 Defendant objects to a jury instruction which he asserts instructed on theories not in evidence and gave a directed verdict on the issue of conversion by adopting the Government's theory. The instruction read as follows: 84 A misapplication is an unauthorized, unjustifiable, or wrongful use of bank's moneys, funds, credits, assets, or securities. A misapplication may be accomplished by various means, such as by the making of a loan which is insufficiently secured, or by the making of a loan to a fictitious borrower, or by the making of a loan where there is no intention to repay or where the maker is insolvent, or by allowing the use of checks or debits to accounts backed by insufficient funds which act is consistently done or concealed, or by the writing of checks by one knowing at the time that such checks will be and are paid out of the bank's funds and not from one's personal account. 85 Clearly, the instruction does give examples of conduct which, if done with the requisite intent, could constitute a misapplication, but for which there is no evidentiary support in the record. While we recognize a danger of prejudice inherent in illustrative instructions of this type and take this occasion to caution extreme care in their use, we do not believe that in total context the instruction actually given here constituted reversible error. Fairly appraised, we think its obvious intention, to give mere hypothetical examples illustrative of the statutory meaning of a term frequently used nontechnically, must have been manifest to the jury. Other portions of the instructions carefully required the jury to find from the evidence the occurrence of each element of the offense beyond a reasonable doubt. Considered in context, we cannot conclude that the challenged instructions could have misled the jury to believe that it could find misapplication on the basis of any of these hypothetical examples not supported in the evidence. 86 Defendant next argues that there was insufficient evidence for the jury to conclude that he acted with intent to defraud the bank. We disagree, and summarize here the most salient evidence supporting the verdict on this element. North Carolina law prohibits a bank from making a loan to an officer or employee without a signed resolution adopted by a majority of the board of directors. While loans to an individual officer aggregating less than $2,500 need not be secured, beyond that amount good collateral or other ample security or endorsement is required. In no event can an officer be loaned more than $45,000. N.C.Gen.Stat. § 53-91. An employee overdraft policy, adopted in 1974 and which Duncan conceded on the stand applied to him, provided that any employee who had three overdrafts within a twelve-month period would be discharged. 21 Defendant never had an overdraft because only normal activity accounts, Code 1, were examined for purposes of the overdraft policy. His was the only Code 3 account and thus the only one to avoid that policy. The purpose of both the state law and the bank policy was to protect the bank from the financial maneuvering of its employees. 87 When the bank auditors came to examine Northwestern, the cash items clerk would call Duncan's secretary and his account would be cleared that day. When the auditors examined the cash items list, defendant's name therefore never appeared. In fact, the full extent of the manner in which defendant operated his account never appeared even on the cash items list. In the beginning of the period covered by the misapplication indictment, the cumulative balance of each customer's checks that were being held in cash items was entered on the cash items list. Later, when the clerk changed the procedure and began listing items separately so that the length of time each was so held could be determined, Duncan's checks were still aggregated and entered as a lump sum. Thus, even if a bank employee had looked at the cash items list out of concern over the manner Duncan did his checking, the length of time the bank had relinquished control over its funds, and the full extent of the risk to which it was exposed, could not have been determined. 88 In short, the jury, with state law, the bank policy, and these practices in evidence before it, could have concluded that Duncan's checking account was deliberately designed to evade all routine inquiries into its operation. While a concerted examination of the account's operation would have revealed the full magnitude of the practice, the jury could further have concluded that Duncan would personally have thwarted such an examination. The Steffey incident, referred to previously, would have supported such a conclusion. 22 From the deliberate evasions of the safeguards created by both the bank itself and the state of North Carolina, the jury could conclude that Duncan acted with the intent to accomplish the very results sought to be avoided by those safeguards, so that he acted with intent to injure or defraud the bank. 89 Pointing again to the evidence that he always had sufficient funds in the bank to cover the checks held in cash items, Duncan argues that since this conclusively showed that the bank could not possibly have suffered a loss by reason of his checking account practice, it also conclusively negates the necessary element in the Government's case of intent on his part to injure or defraud the bank. He further argues that bank officials and employees as well as the Government officials charged with monitoring the activities of the bank knew how he conducted his checking account and that this lack of secrecy precluded a valid finding of intent to defraud or injure. These contentions go to inferences to be drawn by the finder of fact on evidence which in this, as in most, cases would support conflicting findings on the elusive issue of intent. The arguments were undoubtedly made with vigor and clarity to the jury by able counsel for defendant. There was evidence considered in the light most favorable to the Government to support the jury's finding against the defendant on this as well as the other issues submitted. See United States v. Caldwell, 544 F.2d at 696-97; United States v. Scheper, 520 F.2d 1355, 1358 (4th Cir. 1975).
90 Duncan objects to a refusal to admit proffered evidence of banking customs on the issue of intent in violation of the decision of Hyde v. United States, 15 F.2d 816, 821-22 (4th Cir. 1926). 23 The evidence to which he refers is a report of the Comptroller of the Currency on a then current investigation of banking practices, a transcript of a Presidential press conference on that investigation and a report to the Senate Committee on Banking, Housing and Urban affairs by the Chairman of the Federal Deposit Insurance Corporation which documented the overdraft policies of a selection of insured banks. Both reports were prepared and the press conference was held after the conduct which is the subject of this appeal occurred and defendant makes no suggestion that he knew of their contents during the time covered by the indictment. They would seem to be only marginally relevant to the question of Duncan's intent at the time he acted, and were properly excluded. 91 Duncan complains of several incidents during the trial relating to the district court's treatment of Duncan's experts. He asserts these led the jury to believe that a guilty man was attempting to avoid justice by subterfuge. The primary thrust of this contention involves the testimony of William Glenn, an accountant. Glenn had prepared a chart showing the daily average of the amount of defendant's checks held in cash items in one column; a daily average of the balance in defendant's checking account in another; the difference between those two figures; and the interest that would have been due either Northwestern at an eight percent rate or Duncan at a six percent rate on that difference. 92 When the defense offered the charts into evidence, the Government stipulated to their admissibility and the court responded with what Duncan characterizes as an incredulous, I beg your pardon? Following additional testimony by Glenn, the Government finally objected and moved to strike a response that indicated the purpose of the charts was to show that the bank suffered no loss. A bench conference occurred, the court noted that loss to the bank was not an element of the offense and the jury was instructed that loss to the bank could only be considered on the issue of Duncan's intent. This instruction was repeated in the final charge. Twice during further testimony based on the assumptions that underlay Glenn's charts, the Government objected and the trial judge stated in the presence of the jury that he would have excluded the evidence when it was originally offered. 24 During the final jury instructions on the subject of experts, the court referred to accountants and other experts. Finally, the court excluded Duncan's experts from the courtroom during the testimony of other witnesses but allowed F.B.I. agent Thomas Brereton to remain at the table used by the United States Attorney. 93 The trial judge properly instructed the jury that to the extent Glenn's charts tended to show that the bank suffered no loss, this had relevance only to the issue of intent. As noted above, loss to the bank is not an element of the offense charged. 94 While the trial judge could have been more temperate in his challenged comments, they cannot be held to constitute reversible error. The comments were basically explanation for his rulings on objections to testimony. The final jury charge contained an admonition to ignore any comments on the evidence made by the court and to decide the case on the basis of the evidence as the jury recalled it. The instructions on the relevance of the charts to the issues in the case were entirely proper and undoubtedly avoided any confusion the evidence might have caused the jury. The reference to accountants and other experts was fair comment in a case where much of the expert testimony was from accountants. Finally, we cannot say that the judge abused his discretion in allowing agent Brereton to remain in the courtroom, while excluding defendant's experts. Fed.R.Evid. 615; See Cooper v. United States, 594 F.2d 12 (4th Cir. 1979). 95 Duncan complains of the impeachment of his own testimony by evidence of his conviction in the I.R.S. case and of his conduct that was the basis for the charges in the F.B.I. case. Both instances of impeachment were proper. 96 Evidence that a criminal defendant has been convicted of other crimes is not admissible unless the defendant takes the stand or otherwise puts his character in issue. E. g., Lane v. Warden, 320 F.2d 179, 181-82 (4th Cir. 1963). When, however, the defendant puts his character in issue or takes the stand, both of which Duncan did, evidence of prior convictions is admissible. At the time Duncan chose to testify in his own behalf, however, the trial judge had not yet accepted the jury verdict in the I.R.S. case. Alerted by the Government of its desire to use that verdict for impeachment, the trial court accepted the verdict, out of the presence of the jury, just before cross-examination of Duncan began. That act was a sufficient predicate for use of the verdict for impeachment. In any event, while Fed.R.Evid. 609 is silent on the use of a jury verdict that has not yet been accepted for impeachment, the recent case law permits it. United States v. Klein, 560 F.2d 1236 (5th Cir. 1977); United States v. Rose, 526 F.2d 745 (8th Cir. 1975). 97 Since Duncan had stated on both direct and cross-examination that he believed there was nothing wrong with the way that he operated his checking account, the question whether he had electronically eavesdropped on agents of the F.B.I. at the bank was entirely proper, one of the subjects under inquiry by those agents being defendant's checking account. The jury was not apprised of the fact that charges were pending in relation to this conduct. Defendant's contention that the Government should not have been allowed to ask the question because it knew the response would be no is without merit. While Duncan had previously denied the pending charges, he had never done so under oath.
98 The trial court denied Duncan's motion for either a continuance or a change of venue to avoid the effects of prejudicial publicity. We have previously expressed our confidence in the effectiveness of a skillful voir dire to counteract the threat of pretrial publicity, See United States v. Jones, 542 F.2d 186, 193 (4th Cir. 1976); United States v. Abbott Laboratories, 505 F.2d 565, 572 (4th Cir. 1974), and cannot say that the trial court committed manifest error in concluding that the publicity's danger was eradicated in this instance. United States v. Morlang, 531 F.2d 183, 187 (4th Cir. 1975). 99 A prospective juror need not be totally ignorant of publicity. Rather, the inquiry is whether a juror can lay aside his impression or opinion and render a verdict based on the evidence presented in court. Irvin v. Dowd,366 U.S. 717, 723, 81 S.Ct. 1639, 1643, 6 L.Ed.2d 751 (1961). 100 The trial court conducted the voir dire. 25 First, all members of the venire were asked if they had heard anything of defendant's troubles. Those who responded affirmatively were separated from the others and then questioned individually. All those who had heard of the I.R.S. conviction were excluded. Those who had heard about other aspects of Duncan's involvement with the law were questioned further about what they remembered, whether they could lay those memories or other memories awakened by testimony aside, etc. Some were excluded, others were not. Those who were not excluded were then reunited with those who had been exposed to none of the publicity and a jury was drawn from the group. 101 While defendant complains generally of the publicity throughout all of the proceedings, he asserts as reversible error only the failure to grant a continuance or change of venue in the misapplication case. Thus his contention must either relate only to the publicity of the I.R.S. conviction or be that the cumulative effect surpassed permissible bounds only with the Addition of the publicity of the I.R.S. conviction. 102 If his claim relates only to the publicity of the I.R.S. convictions, exclusion of all members of the venire who had heard of those convictions was sufficient to protect defendant's right to an impartial jury. If the claim relates to the cumulative affect of all the publicity, the voir dire used by the trial court was sufficient to protect defendant's rights. The publicity simply was not bad enough to make voir dire totally ineffectual. Cf. Sheppard v. Maxwell, 384 U.S. 333, 86 S.Ct. 1507, 16 L.Ed.2d 600 (1966). 103 To assert that the publicity was governmentally orchestrated does not alter our conclusion. The materials presented to us indicate that at least part of the publicity originated from defendant's camp. In any event, the question would still be whether fairness to the defendant may be accomplished. United States v. Abbott Laboratories, 505 F.2d at 571. We cannot conclude that manifest error was committed by the district court when it concluded that an impartial jury had been selected. 104 Defendant then makes the argument that the exclusion of all persons who had heard of the I.R.S. conviction denied him a jury composed of a fair cross-section of the community, all those who were concerned enough to keep up with current events having been excluded. While it may be possible by rigorous logic to reconcile this contention with the apparently diametrically opposing one that the potential presence of such persons made a fair trial impossible, such an exercise is too subtle to impose on the workaday world of the litigation process. Considering the contention independently of its seeming opposite, we simply find it without merit in this case. A person's lack of knowledge of a specific occurrence simply could not serve as a general basis for drawing the conclusion of general disinterest necessary to defendant's theory, even assuming that the balance of the suggested syllogism would hold up in logic. G. Juror Misconduct 105 After the verdict of guilty on all counts was returned by the jury, the foreman privately brought to the attention of the trial court two possible instances of impropriety by members of the jury. The foreman was particularly concerned that he thought he had heard another juror say that her brother-in-law had been involved in the Duncan investigation. While this proved to be erroneous, the foreman also mentioned that one member of the jury had been arguing Webster's definitions of motive and intent. The foreman, however, had immediately told the group that they were to rely on the court's instructions, not on the dictionary definition. Duncan contends that he was entitled to a new trial because the use of the dictionary was prejudicial per se or, alternatively, that he was at least entitled to a hearing where the jurors could be examined under oath about the use of the dictionary. 106 While reference to the dictionary was misconduct, it was not prejudicial per se. See Rodriguez y Paz v. United States, 473 F.2d 662 (5th Cir. 1973) (per curiam); United States v. Siragusa, 450 F.2d 592 (2d Cir. 1971); Faith v. Neely, 41 F.R.D. 361 (N.D.W.Va.1966); Frazier v. Beard, 201 F.Supp. 395 (W.D.Va.1962). 107 The circumstances in which juror misconduct can occur are probably as varied as all of human experience. We have followed the view that the district court may deal with such claims as it feels the particular circumstances require and have only reversed for abuse of discretion. United States v. Peterson, 524 F.2d 167, 177 (4th Cir. 1975); See Wiltsey v. United States, 222 F.2d 600, 601 (4th Cir. 1955) (per curiam). In this instance, we cannot say that the discretion has been abused. 108 The foreman of the jury only mentioned the dictionary incident as an aside while reporting on the other possible instance of misconduct. He related that he had immediately squelched all discussion of the dictionary definitions. The judge thought little of the incident until he mentioned it to defendant's counsel and they indicated formal concern. By that time the juror involved had left on vacation. The judge ruled that in light of the limited inquiry permitted by Fed.R.Evid. 606(b), further inquiry would be futile. While a juror may testify that she had consulted a dictionary and related her findings to the group, neither she nor any of the other members of the panel can testify to the effect the extraneous influence had on the verdict or on their individual deliberations. Fed.R.Evid. 606(b). 26 F. Discovery 109 Two weeks before trial a subpoena duces tecum was issued at the Government's instance, to George Collins, defendant's successor as president of the bank, calling for the production of certain bank records relating to defendant's account. It provided that it was issued under Fed.R.Crim.P. 17(c) and stated that it could be satisfied by delivery of the documents to the F.B.I. Duncan attacks this as prejudicial error. On the record before us, it was harmless technical irregularity at most. Rule 17(c) allows the production of documents before the court at trial or at such other time and place as the court may direct. The rule is not intended to provide an additional means of discovery, but simply allows the inspection of subpoenaed materials before trial by all parties, thereby saving delay at trial. Bowman Dairy Co. v. United States, 341 U.S. 214, 220, 71 S.Ct. 675, 95 L.Ed. 879 (1951). The challenged defect suggests a misapprehension of the proper uses of the process. But where, as here, there is no contention that the merely permissive direction was actually followed, it is of course impossible to infer any prejudice. 110