Remarkable Frauds,

Hokitika Guardian, 31 October 1924, Page 1

Remarkable Frauds,

SYDNEY, October 10.

Outlie remarkable frauds have rc-<-ciit Iv been attempted or accomplished in Australia. Following the seizure on the Unndwick racecourse in Sydney last week of CfIOOO worth of forced C2O notes comes a disclosure that the \ ie|„rian State revenue has been defrauded of many hundreds of pounds through some persons, whose identity has not been established, chemically treating stamps of lii-h denomination in order to erase the cancellation marks. At the beginning of the year that a duty stamp for k'-jO attached to a document in connexion with a transfer of land appeared to be “dead.” A closer examination of the stamp suggested that it had been chemically treated. The matter was immediately reported to the Department of the

Comptroller of Stumps, aml in turn in Hi,. Auditm-Ceiieral. Inspectors. i*r I ||(<so ollicials tested the stamp scieiltiticallv. and innnd that it had been prcvioiislv used and its cancellation erased hv the aid of acids. At this the Criminal Investigation branch was . ailed in. A furl her search of the Titles (Mfico disclosed that a ore at numher of documents boreduty stamps of all denominations of ClOand upwards, hut principally of CoO. all of which had heen previously cancelled „„d - treated.” Most of these documents had heen ihroUfih a certain city solicitor’s olUce. Unquines there elicited the information —freely ollercd that they had all heen purchased m .mod faith’ from a stamp dealer at a

discount. Detectivea and tlie inspectors of the Auditor-General's Department called on I lie stamp dealer, who also admitted having sold the stamps. He denied having treated them in any way and expresed surprise when told that' they had all been previously ean,.,.||ed. lie had purchased them, he said, in the ordinary course of his business’ After an investigation, extending over months, the ollicials were unable to trace the person Iroin whom the dealer had purchased the stamps. Their reports were forwarded to the Crown Law authorities, who decided that no future action could he taken. Air Norris, Auditor-General, in consequence of these irregularities and a similar affair last year," made a recommendation to the Treasurer with a view to minimise the possibility ol future losses, lie suggested that, m connexion with land transfer and simi,ar documents, instead of duty stamps for CIO and upwards being available at licensed dealers, those having occasion to use such stamps should send cheques covering the amounts to tie Titles Office with the documents, amt these should he franked hy embossing or perforating. The svstem that has actually Won adopted'since the discovery of tie latest fraud is to perforate every dutj stamp on documents immediately they to kKlenl « <'.« Till*. Oinco. ].«■ vear a less extensive fraud on Similai lines was discovered. Duty stamps of small denominations, principally of os previously cancelled, and with the cancellations erased, were detected.