Cameron v. United States

Background

Albert B. Cameron, president and treasurer of a piano company, was indicted twice for lying under oath during bankruptcy-related proceedings. One charge arose from testimony he gave to a special examiner and commissioner before the bankruptcy was formally adjudicated; the other charge arose from testimony he later gave to the referee. He was tried, convicted in the district court, and the appellate court affirmed the conviction.

Reasoning

The Court first held that once the bankruptcy petition and a receivership were in place, the bankrupt’s estate was already under the court’s control and “in process of administration,” so an early examination under the Bankruptcy Act was allowed. The Court then turned to immunity and evidence rules. It explained that the bankruptcy statute’s limited immunity does not shield a witness from prosecution for perjury. Separately, a then-existing statute barred using testimony obtained in judicial proceedings against a person in a criminal case. The trial judge admitted the earlier examiner’s testimony to contradict Cameron’s later testimony even though that earlier testimony did not tend to prove the specific perjury charged in that other hearing. The Court concluded admitting that testimony to prove the other perjury charge violated the statute and was improper.

Real world impact

Because the testimony was wrongly used, the Court reversed Cameron’s conviction and sent the case back to the district court. The decision confirms courts can order early bankruptcy examinations to protect estate assets, but it also limits prosecutors from using testimony from one bankruptcy hearing to prove crimes in a separate proceeding.