Appeal, No. 98, Oct. T., 1961, from judgment of Court of Quarter Sessions of Northumberland County, Sept. T., 1958, No. 112, in case of Commonwealth of Pennsylvania v. Clarence Matthews. Judgment affirmed.
Louis Lipschitz, with him Myron M. Moskowitz, for appellant.
Sanford S. Marateck, Assistant District Attorney with him Harold F. Bonno, District Attorney, for Commonwealth, appellee.
Before Ervin, Woodside, Watkins, Montgomery, and Flood, JJ. (rhodes, P.j., and Wright, J., absent).
[ 196 Pa. Super. Page 62]
This is an appeal from the judgment of sentence of the Court of Quarter Sessions of Northumberland County by Clarence Matthews, the defendant-appellant, after conviction of cheating by false pretenses in violation of § 836 of the Act of June 24, 1939, P.L. 872, as amended, 18 PS § 4386; and from the denial by the court en banc of his motion in arrest of judgment and for a new trial.
The defendant in April of 1957 was the manager of Reading Home Supply Company of Shamokin, Pa., and was in active charge of the business of the company. He arranged with the Guarantee Trust and Safe Deposit Company of Shamokin, Pa., for financing the sale of freezers and food plans by his company under a plan which provided as security for the extension of the credit sought, the assignment of the installment lease contract made by the customer, discount of the judgment note executed by the customer, that accompanied the lease, and the endorsement of the company with the right of recourse in case of default. The bank also required as additional security for this line of credit that five per cent. of the amount of each loan would be retained by the bank as a reserve for losses. The forms to obtain this line of credit were provided by the bank.
In June of 1957 the defendant negotiated with Herbert J. Linderman and his wife Florence, for the sale of a freezer. The Lindermans signed an installment lease sales contract and the judgment note but because,
[ 196 Pa. Super. Page 63]
after measurement, it was discovered that the freezer would not fit in the place provided, they immediately thereafter advised the defendant that they did not want the freezer. The defendant agreed to disregard the transaction and stated that he would destroy the papers. He further advised the Lindermans that if they received any mail from the bank it was intended for him and not for them. No freezer was ever delivered to the Lindermans and no payments were made by them to the bank. On June 11, 1957, the defendant, on behalf of his company, executed the assignment of the Lindermans' contract and endorsed the judgment note to the bank. The bank issued a check payable to the company for $926.25 which represented the proceeds of the loan on the Linderman contract less the retained reserve. This check was cashed by the defendant.
Payments were made on the loan for the months of July, August, September and October and although it does not appear who made these payments it does appear that they were not made by the Lindermans. On July 30, 1958, the balance of the loan was paid to the bank by the Shamokin Home Supply Company. At the time of the loan there was no discussion by the defendant with the bank concerning the delivery of the freezer.
The testimony also disclosed that at the time of the Linderman loan there was $10,895 in the reserve account of the Reading Home Supply Company and in December 1957 there was a sum of approximately $21,000 in the reserve accounts of both the Reading Home Supply Company and the Shamokin Home Supply Company, ...