People v. Zinke, 76 N.Y.2d 1 (1990)
A general partner in a limited partnership cannot be found guilty of larceny for misappropriating partnership funds because partners are considered co-owners of the property.
Summary
Defendant, a general partner in a limited partnership, was indicted for grand larceny for misappropriating partnership funds. He argued that, as a general partner, he was a co-owner of the partnership property and therefore could not be prosecuted for larceny. The New York Court of Appeals reversed the conviction, holding that the state’s larceny statute, consistent with common law, does not allow for the prosecution of a partner for stealing from the partnership due to their co-ownership status. The court emphasized that any change to this rule is a matter for the legislature, not the courts.
Facts
The defendant was the sole general partner in Stonehenge Investment Notes 1, Ltd., a limited partnership. He was also a significant investor. In 1987, the defendant was indicted for two counts of grand larceny in the second degree, accused of stealing $1,050,000 from the partnership by writing two checks on its money market account. The defendant claimed the funds were used for partnership investments, while the prosecution argued it was embezzlement.
Procedural History
The defendant was indicted in Supreme Court for grand larceny. At the close of the People’s case, the defendant moved to dismiss the indictment, arguing he could not be charged with larceny as a general partner. The court reserved decision but the jury convicted the defendant. The Supreme Court then denied the defendant’s motion to dismiss. The Appellate Division affirmed the conviction. The New York Court of Appeals reversed the Appellate Division’s order and dismissed the indictment.
Issue(s)
Whether a general partner in a limited partnership can be found guilty of larceny for misappropriating partnership funds under New York Penal Law § 155.05(1) and § 155.00(5).
Holding
No, because under New York law, a partner cannot be guilty of larceny for misappropriating firm assets due to the statutory definition of