People v. Knott

In People v. Knott (1940) 15 Cal.2d 628, a county auditor was prosecuted and convicted of violations of section 504. It was the auditor's function to draw warrants upon the county treasury in payment of the obligations of the county. The court held that although it was the county treasurer who was legally in possession of the county money, it was the duty of the county treasurer to pay warrants drawn by the auditor regular on their face. The auditor issued a number of warrants on false claims and took the funds secured thereby from the county treasurer for her own use. The court held that within the meaning of section 504, the auditor had "control" of the county money. But, in Knott, there was no issue as to how the auditor secured the blank warrants she was executing, i.e., whether she had control "by virtue of her trust." On the contrary, it was the auditor's function to draw warrants and she was drawing the fraudulent warrants in the course of her duties. Thus, she had control "by virtue of her trust."