In U.S. v. Johnson (9th Cir. 1979) 596 F.2d 842, the Ninth Circuit upheld the conviction of a defendant who had paid salaries to fictitious employees out of grant funds deposited with the San Francisco Redevelopment Agency. (Id. at p. 844.) The agency had entered into contracts with a union for certain maintenance services. (Id. at pp. 843-844.) The defendant, a high-ranking union officer, contended the United States had no interest in the funds after title to the funds passed to the redevelopment agency. (Ibid.) The Ninth Circuit disagreed, holding as a matter of law the funds remained federal property. (Id. at p. 845.) The evidence showed the funds were deposited in trust with the agency to be held and disbursed "under the strictest of supervision" (id. at p. 846) in accordance with terms, conditions and provisions of legislation and regulations that required the redevelopment agency to maintain detailed financial records, file annual financial and progress reports, and adopt government-prescribed financial management systems. (Id. at pp. 844-845.) The agency was required to return interest earned on grant funds to the federal government and record the receipt and expenditure of revenues related to the program; the government retained control to the extent of requiring the agency to use all excess funds for purposes contemplated by the legislation and regulations. (Id. at p. 845.) The defendant signed the agency's contracts with the union, which required the union to keep records in accordance with prudent business practices to allow authorized representatives of the United States Department of Housing and Urban Development to have access at all reasonable times to the records, reports, work schedule files, and other materials maintained by the unions pertaining to the services to be performed under the contract. (Ibid.) On this evidence and in view of the relevant statutes and regulations, the Ninth Circuit held the government contemplated and manifested sufficient supervision and control over the funds for the maintenance program to justify the conviction for theft of government property. (Id. at p. 846.)