CHARGE OF FRAUD.

Dominion, Volume 7, Issue 1927, 9 December 1913, Page 6

CHARGE OF FRAUD.

TIIK BROKER AND THE CLIEN'f. | (By Tjlnrranh.—Press Aesnchitlott,) | , ortrisScluircli, 8, _ In tlic Supromo Court, William Cuii« nm K iiam, i armor .claimed from Raymond i>i%V r • i ' l,, V? l)roisor - li! 0 si:iii °' : ■tIoOG paid to lieiwurth for JSOO shares m tuo Goldon 3 Jar Company which it tos allow*! ijlnmtiif Imd been induced lo li' J . • ii.'iiclulmifc Misrepresentation on ■ tlx, part oi Ht:|j'.vorUi. l>laintiff all.—« to was induced to buy worthless sham by liopwoii.ii and Charles Muw<;, who Moated l*io oontpan v". TJw? nominal midup capital was £21,000. 'J'iioy allocated a I tJw shares to flioiuselves in consideration of n liiininu claim bought for £270 Air. stringer K.C.. for plaintiff, said that early 111 1911 Gharlos Moon? had an A™?. 11 o|,!ilii at M'Rae's i_ ml. JIo nuHScli pegged oiifc a claim in tho same district. Moore mid He]>tvo.r!.h on to red into an affrpomcntfor the creation of tho Golden Jj;ir Go?npany\ with a capital of £*21,003, tho whole be in# nllo<^ted. jn payment; fo.r two mining claims as fully paid-im shams. It was admitted j>y (loU'iidant in interrogatories that Hepworth and Moore paid £270 cash to acquire the claims, imdertakiiiii to jriva tlio owner of ono claim 2300 fully paidup shares in tllo company, They wero tho only sliardlwldcrs and t'lie only directors, adopted aji nercMiient as a privato company, and allotted shares to themselves, tho cfloct putting ■them into possession of fully paid-up scrip for £23,000, but not a eoppc-r of working capital for tho compaiiv. IfppworHi and Monro wore vendors and mirchasci'S; in fact, tho wliolo company. T'lie scheme was domed for tlio punwso of evading the provisions of the Companies Act in reference to public companies in which stares are offered t<i the public. Cunningham. was jiHibced to buy. shares under a total misapprehension. Tlio case is proceeding.