People v. Sharlow

ROTH, P. J. Appellant, in a trial by jury, was convicted of four counts of violating Penal Code, sections 484 and 487, subdivision 1: Grand Theft. He appeals from the judgment.

On numerous occasions beginning in 1959 and ending in 1961, appellant placed advertisements in local newspapers as follows: “Shrimp hauls, L.A.-N.Y., two weeks on, two weeks off, $800.00 a month net, $3,500 required. . . . ’ ’

[598]On four occasions which constitute the basis for the criminal action at bench, the four separate victims answered said advertisement. When appellant met each victim, he represented to each severally that in exchange for $3,500 he would transfer to each a one-half interest in a truck owned by appellant and thereafter the truck thus jointly owned by appellant and the victim would be used exclusively by the victim to make hauls of shrimp in a two-week round-trip schedule to the East coast and that each haul would net a profit of $800.

Appellant also represented to each victim that each would have return loads from the East, that they would work on a two week on and two week off basis and that the hauls would involve frozen foods exclusively.

The testimony showed that each of the victims did in reliance upon said representations enter into written contracts with appellant and paid to him the money required to purchase a one-half interest in a truck for the purpose of hauling shrimp. All of the representations were false and none of the representations were fulfilled. The record shows that appellant did not own any interest in any truck in respect of which he purported to convey a one-half interest to each victim here involved.

The written agreement which each victim was required to sign provided for the return of the $3,500 on two weeks’ notice. As each victim in turn discovered that he was chasing an illusion and actually had no one-half ownership interest in the truck which had been allegedly transferred, each victim in turn gave notice as required by the written contract and requested a return of the money invested. No part of such investment was returned.

Appellant maintained that he never represented that he had actual contracts with third persons to haul shrimp but only “arrangements”; that the contracts he signed with each victim transferring ownership in the trucks were only temporary agreements which would later be made final on the happening of certain events; and that the $800 per month net profit to be made by each driver was only an estimated figure. In essence, appellant’s defense at the trial was, and it is the same before this court, that he had not made any representations with intent to defraud but that in each case a legitimate business venture had been entered into but had not fruitified.