Craig v. United States

Citation5 F.2d 275
Decision Date09 April 1925
Docket NumberNo. 4350.,4350.
PartiesCRAIG v. UNITED STATES.
CourtUnited States Courts of Appeals. United States Court of Appeals (9th Circuit)

Sterling M. Wood, of Billings, Mont., for plaintiff in error.

John L. Slattery, U. S. Atty., and W. H. Meigs, Asst. U. S. Atty., both of Helena, Mont., and Francis A. Silver, Asst. U. S. Atty., of Butte, Mont., for defendant in error.

Before GILBERT, HUNT, and RUDKIN, Circuit Judges.

RUDKIN, Circuit Judge.

The indictment in this case contained eight counts. The court withdrew the even numbered counts from the consideration of the jury and the latter returned a verdict of guilty as to count 1, but not guilty as to counts 3, 5, and 7. The first count was based on section 5209 of the Revised Statutes, as amended by the Act of September 26, 1918 (40 Stat. 972 Comp. St. Ann. Supp. 1919, § 9772). The section as amended provides that any officer, director, agent, or employee of any Federal Reserve Bank or of any member bank, who embezzles, abstracts, or willfully misapplies any moneys, funds, or credits of such Federal Reserve Bank or member bank, with intent to injure or defraud such Federal Reserve Bank or member bank, or any other company, body politic or corporate, or any individual person, or to deceive any officer of such Federal Reserve Bank or member bank, or the Comptroller of the Currency, or any agent or examiner appointed to examine the affairs of such Federal Reserve Bank or member bank, or the Federal Reserve Board, shall be guilty of a misdemeanor.

The count now in question purports to charge a misapplication of funds, moneys, and credits within the meaning of this section. The facts relied upon to show the misapplication are these: Craig was president of the First National Bank of Ingomar, Mont. In his official capacity, as president, he borrowed from the First National Bank of Forsyth the sum of $800, for which he executed the note of the Ingomar Bank, securing the payment of the note by a deposit of securities belonging to the Ingomar Bank. The $800, thus obtained, was deposited in the Ingomar Bank in an account headed, "W. T. Craig, Special." Thereafter this special account was transferred to the general account of Craig, and the $800 was applied on his overdraft in the bank amounting, at the time, to the sum of $1,800. No money was withdrawn from the bank, and the only injury to the bank, if any, was the transfer of the special account to the general account and an appropriate reduction of the overdraft of Craig from $1,800 to $1,000. The question presented is: Was this a misapplication of funds within the meaning of the statute?

In United States v. Britton, 107 U. S. 655, 666, 2 S. Ct. 512, 522 (27 L. Ed. 520), the term "misapplication" is defined as follows:

"We think the willful misapplication made an offense by this statute means a misapplication for the use, benefit, or gain of the party charged, or of some company or person other than the association. Therefore, to constitute the offense of willful misapplication, there must be a conversion to his own use or the use of some one else of the moneys and funds of the association by the party charged."

To the same effect, see United States v. Northway, 120 U. S. 327, 7 S. Ct. 580, 30 L. Ed. 664; Evans v. United States, 153 U. S. 584, 14 S. Ct. 934, 38 L. Ed. 830; Coffin v. United States, 156 U. S. 432, 15 S. Ct. 394, 39 L. Ed. 481; United States v. Heinze, 218 U. S. 532, 31 S. Ct. 98, 54 L. Ed. 1139, 21 Ann. Cas. 884.

In Dow v. United States, 82 F. 904, 27 C. C. A. 140, the Circuit Court of Appeals for the Eighth Circuit said:

"In the several counts in the indictments charging a misapplication of the funds of the Commercial National Bank it is averred that the misapplication was made with the intent to injure and defraud the association, meaning the national bank, and it is clear, under the ruling of the Supreme Court in the cases just cited, that the charges of misapplication contained in these indictments could not be made out unless it appeared that the funds of the bank had been depleted, withdrawn, or diminished in some form by reason of the action of Dow, aided and abetted by McClurken and Miller. The jury were instructed that the fact that Miller received credit in his account on the books of the bank for checks drawn on that bank or on other banks constituted a flagrant misapplication of the funds of the Commercial Bank, within the meaning of section...

To continue reading

Request your trial
3 cases
  • United States v. Michael, Crim. No. 77-455.
    • United States
    • United States District Courts. 3th Circuit. United States District Courts. 3th Circuit. District of New Jersey
    • 17 Agosto 1978
    ...is deprived of the benefit thereof. Dow v. United States, 8 Cir., 82 F. 904; Adler v. United States, 5 Cir., 182 F. 464; Craig v. United States, 9 Cir., 5 F.2d 275." 95 F.2d at 817. It was significant to the Johnson court that none of the money credited to the defendant's account was allege......
  • Johnson v. United States, 4271.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (4th Circuit)
    • 5 Abril 1938
    ...is deprived of the benefit thereof. Dow v. United States, 8 Cir., 82 F. 904; Adler v. United States, 5 Cir., 182 F. 464; Craig v. United States, 9 Cir., 5 F.2d 275. It must be borne in mind that it is not charged that the money credited to the defendant's account was subsequently withdrawn.......
  • Yocum v. Parry Medicine Co.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (3rd Circuit)
    • 28 Mayo 1925
    ......Stephenson and two appellants, Yocum and Craig, filed exceptions to the attorney's fees 5 F.2d 274 asked in this account. On April 1, 1924, the ......

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT