In January, 1958, various items of personal property were purchased from Sears Roebuck and Company, were delivered to McManus’ personal residence, and the charge of $453.72 was paid directly from Company funds.
In July, 1957, Pounds purchased an airplane. Pounds paid $3,765.85 of the purchase price from Company funds, of which $600 was transferred from the trust account the same day. McManus signed the check.
During the period from September 3, 1957 (when the trust account was established with the bank) and November 21, 1957, McManus caused such a flood of bad checks to come into the account (114 cheeks) that the bank refused to further carry the account. In August, 1957, McManus bought in his own name four lots in Marilou Park and drew $2,010 from the trust account to pay therefor.
Lots in Skinner’s Addition were purchased by Freeman. He transferred three of them to Heineke without money payment and Heineke built houses thereon with Company funds. In January, 1958, Heineke signed blank grant deeds thereon at the direction of McManus, understanding that title would go to Company, but the deeds were later filled in and recorded in the names of McManus and wife.
In December, 1957, McManus and Shelley purchased lots from Arnold, using Company checks totaling $2,000 as down payment. March 28, 1958, deeds were recorded by which McManus and his wife, Muriel, conveyed to Ross several properties in the acquisition of which McManus had used funds out of the Company or trust fund bank accounts. These consisted of the four lots in Marilou Park, two lots in Skinner’s Addition, and one of the lots (Lot 90) purchased from Arnold. Said Lot 90 was deeded the following day by Ross to one Muriel Langford. This is McManus’ wife’s maiden name. May 1, 1958, Ross and McManus appeared in the building department at National City applying for a building permit for said Lot 90 in the name of Muriel Langford, listing her address as 737 East Second Street, which was, in truth, the residence of Ross and not the residence of Muriel Langford (Mrs. McManus). Ross signed the application for the permit, although he was not the builder. Under date of June 26, 1958, a deed appeared in the recorder’s office purporting to deed said Lot 90 from Muriel Langford to a Paul Williams. At the purported request of the grantor, this deed was mailed to the purported grantee in Phoenix, Arizona, General De