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Supreme Court — Part 10
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Pendergast vs. United States, 8
in cash from Street. That left $310,000 of the $750,000 ‘‘fee’’
unpaid. And so far as appears it was never paid due to the un-
raveling of facts which led te an exposure of the entire corrupt
scheme. For about that time an internal revenue investigation
of Street’s income tax return disclosed that over $400,000 of the
funds for which Street was to account as trustee had been paid
to unknown persons, This was reported to the Court in February
1939. A grand jury investigation followed in which the rest of
the sordid story was unfolded. See United States v. Pendergast,
28 F. Supp. 601. The Department of Justice caused Pendergast
and O’Malley to be indicted for evasion of income taxes on the
amounts of money so received. They pleaded guilty and were
fined and imprisoned late in May, 1939. Id. On May 29, 1939,
O’Malley’s successor filed a motion praying that the decrees of
February 1, 1936, be set aside on the basis of those disclosures
and that the insurance companies be ordered to restore the funds
distributed to them. The court ordered the insurance companies
to make restitution; and they did. At the same time the court
asked the district attorney whether contempt proceedings should
be filed. About a year passed when the court on May 20, 1940,
requested the district attorney to institute contempt proceedings
against petitioners. An information was filed July 13, 1940. Mo-
tions to abate and quash were overruled, 35 F. Supp. 593. There-
after answers’ were filed and a hearing had. Petitioners were
adjudged guilty of contempt—Pendergast and O'Malley being
sentenced to two years’ imprisonment and MeCormack being sen-
tenced to probation for two years. 39 F. Supp. 189. The Circuit
Court of Appeals affirmed. 128 F. 2d 676. We granted the peti-
tion for certiorari because of the importance in the administration
of justice of the problems raised.
Petitioners press several objections to the judgment below. The
chief of these are that the offense was not a contempt under § 268
of the Judicial Code (28 U. 8. ©. 385) as construed by Nye v.
United States, 318 U. 8. 33, and that even though it was, the
prosecution of it was barred by the three year statute of limita-
tions contained in § 1044 of the Revised Statutes, 18 U.S. C. § 582,
We do not reach the first of these questions and need not express
an opinion on it, For although we assume arguendo that the Cir-
cuit Court of Appeals was correct in holding (128 F, 2d p. 683)
that the conduct of petitioners was ‘‘misbehavior’’ in the ‘‘pres-
ence’’ of the court within the meaning of §268 of the Judicial
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