BRITANNIA BANK

Hokitika Guardian, 30 September 1931, Page 5

BRITANNIA BANK

FRAUD CHARGES. MOND AND CUNNINGHAM. SURPRISING REVELATIONS. (Australian Press Association.) SYDNEY, September 29. Mond and Cunningham, whose arrests were cabled on September 19th, were to-day charged with attempting to defraud various persons by inducing them to become shareholders and depositors in the Britannia Bank, Lim ited, and other companies which they were forming. MOND’S REPRESENTATIONS. A Crown Law official, in outlining tho case, said that the accused knew each other in New Zealand. Mond had arrived in Austra.ia in May last. He proposed to Doctor Hunter, Director of the Ocean Investment Trust, that he should take over the trust, saying that he (Mond) was on a financial mission representing big English interests. He referred to Cunningham as his managing director, who rwas coming out from England. Money for the registration of the Britannia Bank was drawn fl'm the Ocban investment Ti’ust.

Mond, said the Crown Law official, told Mr Wilcox, a .public accountant, who asked for some guarantee that the seven millions capital of the Britannia bank had been paid up in England, that he himself had paid five millions, and that Cunningham had paid fifteen thousand, and also that he.himself held power of attorney from gentlemen in England. Moml had also contracted with the Primary Producers’ Bank Directors, to whom he proposed that they should hand that bank over to the Britannia Bank. HIS “BONA FIDES.” When asked for his bona fides, Mond produced what lie claimed to be a power of attorney from Lord Mel—chett, Mr Robert Mond, Sir Samuel Itothchild', and Rt. Hon Reginald McKenna.

Detective Sergeant Lawrence said that when Mond was interviewed, he admitted that he had c registered several companies on behalf of wealthy syndicates, but he refused to divulge the names. He said the capital for the Britannia Bank was subscribed in England without asking for any_ Australian money, it being cheaper to register companies in Australia than in England, the cost being five hundred here against twenty-seven hundred in England. Later, at the detective office Mond hnd said that he was the individual shown, 'as having paid £5,500,000 into the, Britannia Bank, but he added, “There has been no money paid at nil I All that I want you to do is to let me leave the country with my wife. Our passage home is booked by a steamer leaving on September loth.!’ CUNNINGHAM'S ADMISSIONS. Cunningham, said witness, had admitted that lie had not paid" any of the fifteen thousand show r n against his name. He said: “I haven’t two hob! I want you to let me return to New Zealand.” Detective Lawrence - said that Monel’s scheme was to" purchase companies and banks that had gone into iquidaticn, and to comlyne banking, insurance and trustee work Bank managers, said witness, had later admitted that the scheme was a sound one, but they, wanted to know who Mond was

Replying to Mr Manning, who was appearing for Mond, Detective Lawrence gave evidence that Mond had not drawn any money for his work, and had not asked the public for money

Replying to Mr Henery, who appeared for Cunningham, witness saiu that the only false representation that Cunningham appeared to have made was that he had paid up sand in the Britannia Bank

Doctor David Hunter (Director of the Ocean Investment Trust) gave evidence that he met Mond in July. M nd said that be represented large English financial interests, and that be was related to the Mond family in England He said he was here to open bank, insurance and other companies. Motid told witness that it would be in his interests if - witties s became associated with the Britannia Bank. Witness saw something in the press ab ut the Britannia Bank, and he then asked Mond for his credentials. Mond showed him a cablegram containing the words, “The Big Five.’!’ Witness asked him who “The Big Five” were. Mond replied: “Five English banks.” M Manning: “I understood that Dr. Thompson, of New Zealand, recojnmended you to consult Mond?” Witness: “Yes.” The case was adjourned till to-mor-row.