209 F. 195 | 2d Cir. | 1913
This court, in Re Hanna, 168 Fed. 238, 93 C. C. A. 452, said of the amended section:
“It is intended to prevent a bankrupt from obtaining a discharge, if he, whether in contemplation of bankruptcy or not, for any reason, fraudulent or otherwise, has kept his books with intent to conceal his financial condition.”
It is conceded that one of the bankrupts at various times added $5,000 to the balance on the stubs of the checkbooks, so that any. one seeing the checkbooks, which were lying about on the office desks, would naturally believe that the bankrupts had $5,000 more in the bank than they actually had. We do not see how this admitted altering of the books can be overlooked. It was done with a purpose and the only object must have been to' mislead the persons who saw the untrue entries. It was not done for mere amusement or caprice and the only motive for the alterations must have been to deceive and mislead those dealing with the firm. If the bankrupts wished to keep their balance in the bank a secret, they only had to lock up the checkbooks or keep them in some secluded place.
The bankrupts were doing a, business of considerable magnitude.