A, president of B bank in South Dakota, embezzled funds which he used in trading in grain futures with D, a broker. Neither A nor D intended any actual delivery of the grain. P, surety for A, after having paid the bank for A's defalcation, sued D to recover the money A lost. Held, P can recover. Burke Grain Co. v. St. Paul-Mercury Indemnity Co., (C. C. A. 8th, 1938) 94 F. (2d) 458.

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