FRAUD CHARGES

Press, Volume LXXI, Issue 21417, 8 March 1935, Page 17

FRAUD CHARGES

* SUM INVOLVED TOTALS £2506 ACCUSED COMMITTED FOR SENTENCE iI'HBS.S ASSOCIATION TELEUKAM.) AUCKLAND, March 7. The hearing of extensive fraud charges, involving allegedly false hirepurchase agreements on cars, was commenced in the Magistrate's Court. Five men were charged in connexion with 13 transactions, the separate charges against the accused totalling 32. Other charges against the accused and against three other accused, including a woman, will be heard tomorrow. The total list of charges numbers 59, the total sum alleged to be involved being £2506. Alfred Ernest Hay, a motor dealer, aged 30, and Oscar Herbert Johnson, a clerk, aged 44, were charged on seven counts with conspiring together to defraud the New Zealand Guarantee Corporation, Ltd., of sums aggregating £944 4s 6d. William Kenneth Daniels, a storeman, aged 26, was charged with conspiring with Hay and Johnson to defraud the same company of £IOO and £95 on two occasions. Norman Henry Fraser, an insurance assessor, was charged with conspiring with Hay and Johnson to defraud the company of £l3O and £IOO, and John. Edward O'Donnell, a fruiterer, aged 31, was charged with a similar conspiracy to defraud the company of £llO and £95. Hay and Johnson were also charged with the other three on the joint informations mentioned. Evidence was given by an accountant whose firm is the Auckland agent for the corporation, which finances the sales of cars. He said that on various dates in 1933 Hay produced seven agreements setting out sales of cars and produced collateral promissory notes purporting to be signed by the purchaser. In each case he produced a letter stating that he had enquired into the financial position of each purchaser. Witness accepted the deal and paid out various sums by way of advances. Last December Hay admitted to him that none of the transactions were genuine. Approximately £486 was still owing out of the £944 advanced to Hay. All the accused pleaded guilty, and were committed to the Supreme Court for sentence.