No Contest Plea Entered To Embezzlement Charge

No Contest Plea Entered To Embezzlement Charge

Malloy Case Sentencing Set Feb. 21

On the eve of her long awaited trial, Mrs, Mildred M. Malloy, 54, of 811 Barton Dr., last night entered a surprise plea of “nolo contendere,” (I do not contest), to the charge of embezzlement over the sum of $100.

Circuit Judge James R. Breakey, jr., will sentence her on Feb. 21. He continued her $7,500 property bond.

Appearing with her attorneys, Henry T. Conlin, Jack S. Dulgeroff and John M. Toomey, Mrs. Malloy said she realized that her plea would entitle the judge to sentence her as if she had pleaded guilty or been found guilty in a trial. The maximum penalty for the embezzlement charge is 10 years in prison.

William F. Delhey, first assistant prosecutor, entered an objection to the no contest plea.

Judge Breakey said the record of the Municipal Court preliminary examination would be considered as supporting evidence. The examination lasted seven court days, stretched over a six-week period. In Dec., 1961, and Jan., 1962.

Mrs. Malloy was charged with embezzling approximately $40,000 from the funds earned in private practice by Drs. Norman F. Miller, Tommy N. Evans, and George W. Morley, by whom she was employed as a secretary and bookkeeper. The three doctors are also professors of obstetrics and gynecology at the U-M Medical School.

The embezzlement occured between Jan. 3, 1956, and Aug. 8, 1961. Mrs. Malloy was dismissed on Aug. 13, 1961, and a warrant for her arrest was issued Oct. 10, 1961.

The case has been before the courts since Oct. 27, 1961, when Mrs. Malloy, surrendered herself at city police headquarters and demanded examination.

She had been the object of a 17-day nationwide search in which the FBI participated under a new law permitting it to enter such felony cases.

On her return to Ann Arbor Mrs. Malloy said she had been vacationing in Mexico and the southwest and had not known about the warrant for her arrest.

At her arraignment on March 3, 1962, she stood mute and a "not guilty” plea was entered for her.

Her trial was scheduled to be heard by visiting Judge Richard G. Smith of Bay City at 8:30 a.m. Monday.

Mrs. Malloy's son Jerry L., 26, her only child, was given a 60-day jail term last March on charges of making obscene and threatening telephone calls to the three doctors. Police said he called the doctors at odd hours of the night, keeping them on the line in long conversations while berating them in vulgar language.