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Hokitika Guardian, 19 April 1923, Page 2

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AN AUDAGIOUS FRAUD. THE DUCHESS’ JEWELS. AUSTRALIAN AND N.Z. CARLE ASSOCIATION. LONDON, April 17. Tlie Grand Duchess Xenia Alexan- , drovna, sister of the late Czar of Rus» sia, also a cousin of Queen Alexandra, has commenced an action against Sir Albert Frederick Calvert, the author, claiming £IO,OOO, alleging a conspiracy between defendant and Maurice Stemhad) liv which she was defrauded of Royal jewels of the above value. The Grand Duchess arrived in England in 1921 and according to claimants counsel. Stornbneh introduced her to Sir A. F. Calvert as an eminent financier and a scheme was arranged to invest tin' proceeds of her jewels in connection. The scheme was known as the Exploration Finance Syndicate, purchase the rights of a patent of photographic process from which tne return of fabulous riches was promised. The Duchess handed over the pearls which were pawned for £4OOO. Later the second and third strings were pawned and' these realised £IO,OOO. Stembach then wrote to the Duchess stating that Calvert had gone to Hamburg to. consult exports and he expected that the deal would he closed before the end of the week from which £50,000 would he received.

Counsel described the business as a cruel fraud, the Duchess being entitled to receive some of the money back. The Duchess gave evidence to the effect that Stembach presented a letter of introduction to her. He undertook to dispose of the jewellery entrusted to him and she had not received a ponnj back. Prince Serge Dolgorouki stated in ovi. deuce that Stembach told him the pearls would sell at a higher price in America and Stembach offered to get them there without paying duty. Mb.cn asked why no receipts had been given J to the Duchess Stembach s'A'id that they bad the faith to believe in each other, and no receipts were necessary. The Prince testified to seeing Sternbach pay Sir A. Calvert the £50,000. DUCHESS WINS CASK. LONDON. April 18. The jury in the Grand Duchess Xenia’s case, without retiring, returned a verdict foi the plaintiff tor £IO,OOO. Judgment was entered up accordingly with costs. Justice Darling directed that the papers by sent to the Public Prosectjr tor.