McNaboe v. Columbian Mfg. Co.

Citations

• 153 F. 967
• 83 C.C.A. 81
• 1907 U.S. App. LEXIS 4483

Syllabus

<p>Bankruptcy — Preference—Stolen Funds.</p> <p>TUo president of a bankrupt corporation, being tbe Eastern agent of defendant corporation, with knowledge of the bankrupt’s insolvency on several occasions, misapplied funds belonging to defendant to file use of the bankrupt without defendant’s knowledge or consent, and then, when the bankrupt’s failure could no longer be suspended, he sold certain of the bankrupt’s assets, and with the proceeds repaid defendant the money misappropriated, also without defendant’s knowledge. Held, that the repayment of the money so stolen from defendant did not constitute a preference recoverable by the bankrupt’s trustee.</p>