People v. Skeen

DRAPEAU, J.

The prosecuting witness, Mrs. Edna H. Allen, is an elderly widow. Her daughter married a gentleman by the name of David A. Scott-Duns. The marriage was of short duration. While it lasted the widow trusted her son-in-law with a general power of attorney, with the idea that he would conduct all of her business affairs.

She even gave him a check for $3,000 for a Christmas present. This check was endorsed by and paid to the defendant Richard E. Skeen. This was in Illinois in 1945. In January of 1946 the mother, her daughter, and son-in-law came to Los Angeles. The defendant Skeen followed shortly thereafter.

A business proposition was suggested among the three parties, the defendant, the son-in-law and the widow. The defendant and the son-in-law represented they could make $40,000 a year with a tennis court and a shop in connection.

After several discussions relative to this project, an agreement was entered into among the three parties. This agreement was entitled ‘ ‘ Certificate of Formation of Tennis Enterprises, a limited partnership, and/or Articles of Partnership of Tennis Enterprises, a limited partnership.” The agreement recited that Mrs. Allen was to contribute $35,000, and to be a limited partner with 1 per cent interest in the net profits. Scott-Duns was to contribute $1.00, and the defendant, Skeen, $10,000. Each of the latter parties was to have 49% per cent interest in the net profits. Mrs. Allen was to get 5 per cent on her investment, and to be repaid the $35,000 by annual payments of not less than 10 per cent from the net profits.

For the purpose of raising the money for her contributions Mrs. Allen sold corporate securities and insurance annu

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ities. The money from these assets passed through Scott-Duns and into two bank accounts in the name of Tennis Enterprises, upon which Scott-Duns and the defendant, Skeen, were empowered to draw checks. Thereupon Scott-Duns and Skeen proceeded to withdraw from these accounts all of the $35,000, without devoting one cent of it to the purposes mentioned in the agreement.

The defendant, Skeen, made his $10,000 payment to the “business” by withdrawing from the Tennis Enterprises account and purchasing United States notes. Then he borrowed from the bank $10,000, pledging the United States notes as collateral security, and thus made his “contribution.”