Court Opinion

ID: 9858605
Source: CourtListenerOpinion
Date Created: 2023-09-24 16:33:55.558921+00
Date Added: 2024-06-11T09:55:09.371848
License: Public Domain

Mb. Justice Bubnett
delivered the opinion of the Court.
Plaintiffs in error were indicted and convicted of fraudulent breach of trust and sentenced for a term of not less than three (3) years and not more than five (5) years in the penitentiary. From this conviction they have sea*181sonably appealed, filed assignments of error, briefs and able arguments have been beard. We now have tbe matter for disposition.
Nelson was tbe Financial Secretary and Gann was the Treasurer of tbe United Steel Workers of America, CIO Local No. 3115. In tbeir capacity as such officers, these men, along with tbe President of tbe Local, signed all checks which were issued on tbe account of tbe Union. Tbe account was carried in a local bank in Chattanooga in such manner so that tbe signatures of any two of these officers was sufficient for tbe bank to honor tbe payment of checks drawn on tbe Union’s account. Beginning in tbe summer of 1956 and running through January of 1958, Gann and Nelson signed and cashed some eighty-five checks altogether comprising a sum of $6,148.28. Of this total amount, the sum of $3,287.63 was made payable to Gann, and the checks endorsed by him, and the amount of $2,860.65 was made payable to Nelson and these checks were endorsed by him. No single check exceeded or equaled the amount of $100.
As a result of cashing these checks and receiving the funds therefrom, these parties were charged in the indictment of fraudulent breach of trust under our statute, Section 39-4226, T.C.A.
The record shows that it was customary for these officers of this Union to be reimbursed for their loss of time when they were representing the Union in public matters pertaining to the Union, and that they were also reimbursed for expenses incident to attending conventions and meetings of the Union. The International Auditor of the Union, who testified at the trial, stated that the amounts received by these plaintiffs in error were far *182in excess of other officers, and that as a consequence of running into the checks above referred to in his audits, he, as the Auditor of the Union, made an audit of the books of the Local. He testified that for these plaintiffs in error to have received this amount of reimbursement as shown by these checks drawn by them on Union funds that they would have incurred six months ’ loss of time and that this was an impossibility.
The record also shows that when Gann was confronted with this Auditor’s findings he signed a statement. Nelson when confronted with the information refused to sign any statement or to make any statement. Out of this factual situation this indictment was brought and the conviction had as above indicated.
The indictment charged that these men on or before January 31,1958, “did unlawfully, feloniously and fraudulently appropriate to their own use the sum of $6,148.28 in good and lawful money of the United States of America, the personal property of Local Union 3115, United Steel "Workers of America, an unincorporated association” which had been placed in the hands of these men and which had come into their hands to be used for the purpose of the administration of the affairs of the Union and that these men knowing this when they received the property and in disregard of their duty had “unlawfully, feloniously and fraudulently converted and appropriated said property to their own use;” and thus “did commit fraudulent breach of trust. ’ ’
The six assignments of error all hinge on the proper answer to the question of whether or not this appropriation of these funds of the Union, through cashing a series of checks, constituted a single, continuing impulse or *183intent pursuant to the execution of a general larcenous scheme?
 As far as we can find, or have been cited by able counsel, there is no direct authority in this State, but the general law seems to be in other States that if each taking of these separate checks is the result of a separate independent impulse or intent each taking is a separate crime, but ‘ ‘ On the other hand, where it appears that successive takings are actuated by a single, continuing, criminal impulse or intent or are pursuant to the execution of a general larcenous scheme, it has been held or stated that such successive takings constitute a single larceny, regardless of the extent of the time which may have elapsed between each taking.” 136 A.L.R., 948, 950. In this note the cases pro and con on the question are ably annotated. This annotation further very correctly says that “Whether a series of successive acts of taking constitutes several thefts or one single crime must be determined by the particular facts and circumstances of each case.” Page 951.
After reading many of the cases cited in the above A.L.R. note and others, we are convinced that the statements above made are sound, correct and should be applied in this State when the facts of a particular case meet those statements. So the question here is whether or not under this indictment the various checks taken by these plaintiffs in error were actuated by a single impulse or scheme whereby these parties could take this money from the Union with the hope of not being detected.
This record bears out beyond question that these plaintiffs in error entered into a common and continuing design and scheme to fraudulently appropriate the funds *184of this Union which total the amount that they were indicted for fraudulently appropriating. The plaintiff in error, Gann, admitted such in his signed statement herein, wherein he said he had ‘ ‘ discovered a means of embezzling funds from the local union.” Such language to us clearly shows or describes an intent to launch forth upon a continuing course of conduct for the purpose of fraudulently appropriating the funds in question. What he says in effect is that he and the other participant in getting the other portion of the checks, the other plaintiff in error, have discovered a means whereby they could obtain these Union funds. It took the two of them to carry out this scheme because the signature of two was required on the checks whereby they got this money. They then by their concerted action could and did appropriate this money from the funds of the Union to their own use.
Of course, the statement of G-ann, which he voluntarily signed, is not admissible as to the plaintiff in error, Nelson, but we can and should, along with the facts to be more fully discussed hereinafter, consider this statement in order to determine clearly from this evidence that these defendants entered into a common and continuing scheme for the purpose of appropriating these funds.
All the evidence shows that it was necessary for all checks to be signed by at least two of the three officers of the Union. Neither of these plaintiffs in error could have singly cashed checks on this fund. It became necessary that two of the three men having that authority sign the checks before they got the money from the bank. Therefore since this group of checks that were introduced, 47 to one man and 48 to the other, which they cashed individually and which checks ran in sequence, in other words Check No, 1 was written to Grann and Check No. 2 to *185Nelson (this is a matter of illustration, of conrse) this to onr mind showed that these parties had entered into a conspiracy to fraudulently take money of this Union.
In Smith v. State, 205 Tenn. 502, 327 S.W.2d 308, we discussed the question of what would constitute a criminal conspiracy and there held that a conspiracy may sometimes he inferred from the nature of the acts done, the relation of the parties, and the interest of the alleged conspirators, and any other circumstances surrounding these parties; that where two or more people for the purpose of accomplishing a criminal or unlawful act combine together to do something unlawful, either as a means or an ultimate end, it is a conspiracy. The way these checks were cashed, the way they were written and the surrounding facts here clearly would warrant, and demand almost, a jury in finding that the parties had made a conspiracy to do this act prior to its execution.
Another very significant thing is that under this record all checks, which had been issued for legitimate purposes, were countersigned by the President of the Union in addition to the two plaintiffs in error. None of the checks offered to prove this fraudulent breach of trust had been signed by the President, who testified herein, as to these acts and whose testimony lends weight to this fraudulent conspiracy and scheme. Another indication of this scheme occurs to us, which is shown by the evidence, that is, that these checks were written in small amounts, that is amounts less than $100 and in odd cents, which clearly indicates a purpose, and the jury would certainly be warranted in reaching this conclusion, that this was done to try to escape detection and to make the checks look like they were being drawn on this account for a legitimate purpose. This fact likewise shows clearly, as it was *186done over a period of time, that this was a continuing scheme and that when each of these checks was drawn it was not just one theft but that they had found a way to do this and were going to continue doing it, as they did until they were caught.
This Court in Hill v. State, 159 Tenn. 297, 17 S.W.2d 913, 914, showed the difference between embezzlement and fraudulent breach of trust, and also showed that they are kindred offenses, but distinct under our statutes. Whether the one offense or the other has been committed is determined by the manner in which the property converted came into the hands of the defendant. In the Hill case this Court made an applicable distinction in language, as follows:
<£As we view this case, the transaction, made the basis of the indictment, was not larceny because there was no trespass; it was not embezzlement because the fund was not received from a third party for the employer, but the misappropriation was from the general funds of the employer, over which the defendant alone had control, and falls within section 6580 of Shannon’s Code (now Section 39-4226, T.C.A.), which defines fraudulent breach of trust as follows: ’ ’
Then follows the quotation of the statute which defines fraudulent breach of trust. This same statute is now, as indicated above, carried in the Code.
We are satisfied that under the facts here, wherein two men who might through their signatures have control of the fund which clearly was the fund of their employer have entered into a scheme to cash checks on money of their employer to each other with the signatures of both on each check, that this clearly amounts to a fraudulent *187breach of trust under the statute (Section 39-4226, T.C.A.).
The plaintiffs in error concede that this Court has held as above in the Hill case, supra, but argue that this holding is erroneous, and that we now should reverse the holding in the Hill case. To the contrary, it is our conclusion that the holding in the Hill case is correct, and we now reaffirm, the holding of this Court in that case.
A very able argument is made on behalf of the plaintiffs in error that the indictment herein is insufficient because it did not state on the face of the indictment that the total amount alleged to have been fraudulently appropriated was made up of these various checks and each check should be listed, because it is said, under State v. Ferriss, 71 Tenn, 700, that this indictment does not furnish notice to these parties of what they are to be tried for and that since notice is not furnished them that they are to be tried for each separate check they might again be tried for a larceny under each of these checks. This though we think is an incorrect application of the Ferriss case. Here these plaintiffs in error were indicted for fraudulent breach of trust under a statute, above referred to. This fraudulent breach of trust was made up of a continuing act, as we have pointed out above under the facts, and the total amount of these acts total what was set forth in the indictment. Prior to the indictment both parties were sufficiently apprised of any charges that might be made against them by this Union. This indictment clearly pointed out that this was for fraudulent breach of trust in taking the funds of this Union. Thus is is, as we view it, these parties could not again be tried for the misappropriation of these funds for two or three reasons. One, of course, is that they would be barred by the statute of *188limitations as each check came under $100 and would be for petit larceny only, and two is that they were charged with a total offense and then it became incumbent upon the State to prove that this total offense was a scheme or continuing act to set out in the beginning, otherwise they could have been only convicted of a petit larceny. Under the charge of the court, if the jury had believed that these were separate offenses, they could have returned a verdict for a lesser punishment as is provided in the case of petit larceny. The offense of fraudulent breach of trust is punishable as in the ease of larceny. (Section 39-4228, T.C.A.).
We have spent several days reading this record and the authorities and considering the matter, which has been very ably presented, and after having done so, we are satisfied that the plaintiffs in error have had a fair trial and that the conclusion of the jury was correct and there is no reversible error in the record. For the reasons stated above the judgment of the trial court must be affirmed.