Patrick

The appellants were indicted for using the mails to defraud, for misapplication of the funds of a national bank, for making false entries in the books of a national bank, and for making false statements and representations and overvaluing securities for the purpose of obtaining a loan from the Reconstruction Finance Corporation in violation of 18 USCA § 338, 12 USCA § 592, and 15 USCA § 616 (a). The indictment contains ten counts. Both appellants were convicted on six counts. The appellant Paul Patrick was sentenced to five years on each of five counts and two years on another, to run concurrently, and fined $500 on each of five counts. Appellant Nixon was sentenced to one year and one day on each count, sentences to run concurrently.

The charges grew out of the use of fraudulent warehouse receipts as security for notes executed by dummies as an accommodation for appellant Patrick. Appellant Patrick was the owner and manager of three warehouses used for the storage of wheat, which were operated under the fictitious name of Fred Schwab Commission Company. In January of 1932 appellant Patrick issued a negotiable warehouse receipt calling for 5,515 bushels of wheat to his brother,…