United States v. Dunkley

• Decision Date: 28 September 1916
• Docket Number: 5906.
• Citation: 235 F. 1000
• Court: U.S. District Court — Northern District of California
• Parties: UNITED STATES v. DUNKLEY.

235 F. 1000

UNITED STATES v. DUNKLEY.

No. 5906.

United States District Court, N.D. California.

September 28, 1916

John W Preston, U.S. Atty., and Casper A. Ornbaun, Asst. U.S. Atty both of San Francisco, Cal.

Herbert Choynski and James R. Kelly, both of San Francisco, Cal., for defendant.

DOOLING District Judge.

Defendant an attorney, is charged with a violation of the following provision of subdivision 'b' of section 29 of the Bankruptcy Act:

'b. A person shall be punished, * * * upon conviction of the offense of having knowingly and fraudulently. * * *

'5. Extorted or attempted to extort any money or property from any person as a consideration for acting or forbearing to act in bankruptcy proceedings.'

The indictment alleges the following facts:

'That Capital Paint Company was adjudicated a bankrupt by this court and the proceedings referred to J. F. Pullen, referee; that H. T. Hobson was elected trustee, and defendant was his attorney in said bankruptcy proceedings; that before the referee there was pending on September 22, 1915, a petition filed by said Hobson, as trustee, through defendant as his attorney, asking that a sale be ordered of all the stock of said bankrupt; that such order of sale was made, and said sale was set for September 22, 1915, to be had before said referee; that at said time all of the bankrupt's stock was offered for sale; that the highest and best bid therefor was the sum of $1,500, and such sum was offered by one Sam Hersch; that when said bid was made the defendant, acting as the attorney for the trustee, protested, and advised the referee against the acceptance of said bid, and stated to said referee that said sum of $1,500 was an inadequate price for said goods, and requested that said sale be continued to the following morning, September 23, 1915; that pursuant to said request the said referee did continue said sale until said date, at which time defendant appeared before said referee and advised and persuaded him to accept said bid, and approve the same as the highest and best bid that could be obtained for said property; that following the continuance of the sale on September 22d, and before the sale thereof on September 23d, the defendant, by reason of his position as attorney for said trustee, did demand and receive from the persons of Sam Hersch and R. L. Scott the sum of $50 as a consideration for his acting in said bankruptcy proceedings in using his influence in causing the said referee to confirm the said sale, and accept said sum of $1,500 bid and offered by said Sam Hersch on September 22d; that said sum of $50 so demanded and received by said defendant was in further consideration of his forbearing to act in said bankruptcy proceedings, by making no effort to secure bids from persons other than the said Sam Hersch; that defendant was not entitled to said money, and the same was paid unwillingly, and under the fear that unless it was paid, the said property of the bankrupt would be sold to other parties; and that no part of said sum was accounted for by defendant or the said trustee in the bankruptcy proceedings.'

It is then formally averred that defendant, in the manner and form aforesaid--

'did willfully, unlawfully, knowingly, and fraudulently extort money, to wit, the sum of $50 from...