GREAT FRAUD ALLEGED

Hokitika Guardian, 4 July 1930, Page 5

GREAT FRAUD ALLEGED

INSURANCE COY. HEADS

ON TRIAL AT SYDNEY.

(Australian Press Association)

> /" SYDNEY, July 3. ,The trial has begun at the Criminal .ovvourj; at Sydney of well-known comj ,i/ mercial men associated with the Aus--4 traliaii' Federal Life Genei •al Assiir- « <• . ance; Company Limited, on charges of conspiracy and fraud, as cabled on April 25th. The defendants are: Al,V£ | )ei 't ..Sniith, aged 42, accountant; Viv*7* Paitridge, aged 38, managing director Ralph Paul, aged 34, • secretary; Harry Roach, aged 39, accountant. 1 The Crown Prosecutor described the fraud as being one of .the-, worst ever perpetrated in the history of this State. He skid that the balance sheet of the company to November,' 1928, showed that its assets were over valued to •he- extent of £115,000. The building Occupied was written up by nine thouocQUpied.was written up’ by £9900 above its trite valuation. Counsel spent the Wnole day in analysing the finances of the company. He said that the balance sheet at the end of ' December last showed cash in hand as..four thou«and, but actually the cash .was four pounds only. It was stated that the Australian Federal! Company had absorbed the People’s ' Prudential Company, one director !of which received, at the rate ,of for, his shares whereas private; shareholders received only 325. A sum’ of £45,'000 was borrowed in Melbourne with which to purchase a controlling interest in the People’s Prudential, and the interest rate was something like. 44 per cent, for three •mdnthsi. Ewiitiially both -4110 companies were forced into liquidation. .Claims by policy holders in April ' last, amounting to £IB.OOO were unsatisfied! Since then hundreds of new policies were .accepted, even though the i Australian Federal Company wa.s un- .< able to pav-its own employees. The cafee was .adjourned. ; ' (Received this dav at 8 a.m.) ■ . X" yhj; SYDNEY, July 4. ' Another allegation is, that Partridge received £9368' sterling from the! company while it was' insolvent.