CAR INSURANCE CLAIMS

Press, Volume LXXI, Issue 21418, 9 March 1935, Page 6

CAR INSURANCE CLAIMS

FRAUD ALLEGED FURTHER CASES HEARD IN AUCKLAND (I'KESS ASSOCIATION TELEGRAM.) AUCKLAND, March 8. Evidence concerning insurance claims on an allegedly "mythical" accident was given in the Magistrate's Court during the further hearing of extensive fraud charges connected with motor dealers' transactions. On Thursday, 13 transactions involving 32 separate charges were investigated, and to-day four further transactions formed the subject of eight charges, j The hearing will be continued on Monday, The total list of charges numbers 59 and the sum alleged to be involved is £2506. At to-day's sitting, Alfred Ernest Hay, a motor dealer, aged 30, and Oscar Herbert Johnson, a clerk, aged 44, were charged with conspiring with Leila O'Donnell, who appeared on summons, to defraud the New Jisaland Guarantee Corporation, Ltd., o: £IOO 10s. Hay and Mrs O'Donnell were also charged with conspiring with Norman Henry Fraser, an insurance assessor, aged 36, to defraud the North Island Motor Union Mutual Insurance Company, Ltd., of £57 ss. Individual charges were laid in each case against the four accused. ,llay was also charged with stealing £95 on November 15, 1934, and with stealing £22 on January 19, 1935. Evidence that he had paid £IOO 10s to Hay on receipt on a hire purchase agreement on a car, signed by Hay, Johnson, and Mrs O'Donnell, was given by Basil Dixon 33uddle, of Auckland, an agent for the New Zealand Guarantee Corporation. Detective McWhirter produced evidence showing that the circumstances were similar to those in the charges heard on Thursday, and that no car had been purchased by Mrs O'Donnell. He read a statement made by Mrs O'Donnell in which she said that Hay was her brother-in-law and had induced her to sign the documents by telling her that he wished to buy a car but was temporarily short of cash. He suggested that she should sign the papers and he would meet the payments. "I did not read anything I signed," Mrs O'Donnell's statement continued. "I passed on any papers I received to Hay. I always thought he was successful in business. I never received any money or expected any money on these transactions." I "I do not think the country should be put to the expense of sending this woman before a jury," said Mr F. K. Hunt, S.M. "She has been very foolish, but I do not think that she bad any criminal intent. She w;i.t obviously under the domination of a rel-i----tive." The charge against Mrs O'Donne'l was dismissed. Hay and Johnson pleaded guilty and were committed to the Supreme Court for sentence. Evidence on tin; second charge alleging fraud against the insurance company was then brought. A clerk in the claims department >1 the North Isiand Motor Union Mutual Insurance Company said that in September, 1933, a proposal for the insurance of a car allegedly owned ny Mrs O'Donnell for £IOO was accepted. Shortly afterwards a claim was received for an accident, and a report was received from the assessor, Fraser, recommending payment of £lB Ms lid for damage to Mrs O'Donnell's ear and £3B 10s 9d for damage to a "second car" owned by a "Mr Hutchinson." These payments were made. Hay and Fraser pleaded guilty to hte charge and were committed to the Supreme Court for sentence. The charge against Mrs O'Donnell was dismissed. A charge of theft of £95 against Hay was dismissed. To a charge of stealing £22 Hay pleaded guilty.