HUGE WEB OF FRAUD.

Dominion, Volume 7, Issue 1986, 17 February 1914, Page 8

HUGE WEB OF FRAUD.

IN THE CUSTOMS!

STATE'S LOSS M THREE YEARS,

OVER £9000 TRACED.

.'(By Telegraph.—Press 'Associatioa.) Christchurch, February 16. The eighty men who pleaded! guilty in the Supreme Court to a number of charges of theft from the Customs Department came .before Mr. Justice Denaviston' at tho Supreme Court this morning.. ''Jiis Honour imposed the following sentences:—Samuel John M'Cormick, three years; John Hill, three years'; Ernest Walter Wood, two years; Hugh Lawton-Owen, eighteen months; Jas. 'Anderson Campbell, eighteen months; Francis Geoffrey Leigh.. eighteen months; Christopher Robert Smith, ono year, George Clifford Francis is to come up for sentence when called upon. After pronouncing sentences His Honour said that representations would ■be made to tho authorities with a view to having Wood, Campibell, Owen, Leigh raid .Smith placed in plantation camps, thus protecting them from gaol associations. ■■■-■ ' ■

'His Honour,- addressing all the man, said that they had pleaded guilty to a series'of deliberate frauds against the Customs,- aiid'also-, in many of the cases, against their employers. 'There only re-trained-for-him the painful duty of pro-: iio'uncing sentence. In addition to the charges to which they had pleaded . guilty, tlie;f had- also practically admitted that "they'-had committed other frauds. These had extended over several years. 'Tho -'practice of.destroying the records after a period of; three years mad© it irripossiblo .to procure evidence in respect to these frauds, but the system under which the frauds had been possible had been.in:existence for many years.. In, some cases,, at all events, some of them must have been engaged for a considerable .'period in defrauding tho Customs. 'The amount which had lieen actually traced was over £9000, and that amount was of course distributed nmongst them. He,did not wish to make any ; on© of ;them ; a scapegoat, but it was necessary that substantial punishment should be given. His Honour added that he had taken into account extenuating circumstances where they existed'- so as to discriminate'as to the degree of individual culpability. .. Ringleaders in tho System.. Addressing M'Cormick, His Honour said,that prisoner had been a Customhouse . clerk /for the Express Company lor a number .'of: i ears, and transactions had been -.traced, to .him in, conjunction .with'Sriiith;amounting.to.£4673.', Addressing Hill His Honour said that he; could not help thinking that during the long period.that he was in the Cus-toms-Department—a period of 17 years frauds must have gone beyond the three years for which ho, had been responsible for' defalcations 'of £2500. It was clear "that ; a-system of .fraud .had been in full'-vigour.."during',: the past three -years, and. must have existed prior t6;that.-.-.Hill w'as the owner of real 'pfope'rty'of considerable value, as ito the source' of which he had made no attempt, to. account. :; His;' Honour, ;in..concluding;' :-s"aid,:'• "YouAinust: be ...looked .upon :" A sent-' enco of three years' • imprisonment was imposed on M'Cormick ahd-Hi11...' f ■"'

Addressing Wobd,'.His!-'Hdnour said that he had been connected with the frauds for three was responsible for £2400. How much more he-.was responsible for. prior to 'these three.years could :only.'be conjectured. Hejr.hadf obtained this' large ■■sum by fraud, and had apparently spent it in self-indulgence. ,A sentence of two years' 'imprisonment was imposed...

. - Others; Caught fn tha Wob. 'Addressing Campbell,, His'. Honour said 'thaifcyho had a long and good previous r record-in-the Custems until he took" "to. driiilc', after whiclr'he' was reHe' (Campbell)'was responsible for very large- ■sn'r.is obtained by fraudulent misappropriator!, but, according to the'author!tit>j.' i:y : had received very the ".amount, and it appeared that he ■ had. no '.'.share in the" system, though •unfortunately.-.-he- appeared to 3iave':'got'into the middle of if. As to' Offen and.Leigh; they had appropriated substantial sums of money by a large number of fraudulent operations. Campbell, Owen,' , and Leigh were each sentenced :to 18 months' imprisonment. Addressing Smith, His Honour'"said that-he'-had largely co-operated * with MCormick, and, as.ho was M'Cormiclc's subordinate' and there was reason to believe,, that he' was '.under M'Cormick's influence, and as His-Hori-otir was informed that there was reason to beli«ve that he' received only a. small-share of the proceeds. of the frauds, he woukL deal with him comparatively leniently. In i addition to .these facts. His.Honour added that' lie Jia.d also taken' Smith's youth into consideration. He was sentenced to twelve months' imprisonment. ' . • Addressing Francis, .His Honour said that: he had misappropriated something under £200. It had been stated by the Bar and accented hy the Crown thai, 'Francis was only in receipt of a small salary, and was nracticallv'the head of a large family of small children and a widowed'mother. It was alleged that it was,, under pressure of his mother's painful "and : fatal illness that Francis Ji.ad taken advantage of this svstem of frai'-l It was also in his favour that' J'p-dirl nnt'ner'sist lV.thefrauds for any length of tiro. If he had come alone before the Covrt, in these .sneeial circumstances, ; His ; Honour ; would have r-usnpnded s"'itei'ce. durin" good b'chaviorr. _ Thn fact,that Francis an-n»ar-<'l with .others, however, was not. His Honour thought, a. reason for dealing otherwise with him, and he was orrl"r"d to com* un f"r sonte'ic" wh~n called _ nn'oii, but was in formed that, lie wq,< liable to he proceeded nijahist civilly for the moneys appropriated.