Appeal, No. 153, Oct. T., 1955, from judgment of sentence of Court of Quarter Sessions of Philadelphia County, Nov. T., 1953, No. 252, in case of Commonwealth of Pennsylvania v. James A. Andrew. Judgment affirmed.
Leon Rosenfield, with him John Patrick Walsh, for appellant.
Victor Wright, Assistant District Attorney, with him William J. Brady, Jr., Assistant District Attorney, and Samuel Dash, Acting District Attorney.
Before Hirt, Ross, Wright and Ervin, JJ. (rhodes, P.j., Gunther and Woodside, JJ., absent).
[ 178 Pa. Super. Page 413]
The defendant, the President and a Director of Seaboard Mutual Casualty Company, was convicted of the fraudulent conversion of $48,209.57, and also of embezzlement of the funds of the corporation in that amount under §§ 827 and 828 of The Penal Code of
[ 178 Pa. Super. Page 414]
June 24, 1939, P.L. 872, 18 PS §§ 4827, 4828. He has appealed from the sentence imposed, contending that in law, under the facts as to which there is little serious dispute, he is not guilty.
The Seaboard Mutual Casualty Company was organized by the defendant and was incorporated on May 15, 1933. Throughout the life of the company the Board of Directors tacitly clothed him with broad authority in the conduct of its affairs. Defendant received no salary from the company. He however profited from business related to insurance contracts written by Senboard, as we shall call it, through two companies which he operated as sole owner, viz: James A. Andrew Insurance Agency, a corporation, and Keystone Adjusting and Investigating Company. The agency corporation was the general agent for Seaboard and received commissions from it on contracts of insurance written in its name. The adjusting company settled its losses.
The laws of the State of Maryland required that a mutual insurance company have a surplus of at least $50,000 to qualify for doing business in that State. Seaboard had been writing insurance in Maryland. During 1947, particularly, serious inroads had been made on Seaboard's surplus. The company however was not in apparent financial difficulty and it still could lawfully write insurance contracts in Pennsylvania. To qualify for continuing its business in Maryland however it was necessary for Seaboard to restore its surplus to the amount which would meet the minimum requirements of that State. Defendant undertook personally to raise $50,000 for this purpose. On December 18, 1947, the National Bank of Germantown loaned him $48,000 on his personal note. With the proceeds, together with an additional sum supplied by the defendant, the bank bought United States Government bonds in the sum of $50,000. On receipt of the bonds they were delivered by
[ 178 Pa. Super. Page 415]
the bank to the defendant and were deposited by him with Seaboard to re-establish a surplus in the amount necessary to continue the operation of ...