TRAPPING A FRAUDULENT DEBTOR

Inangahua Times, Volume IV, Issue 37, 4 July 1877, Page 2

TRAPPING A FRAUDULENT DEBTOR

The Otago Daily Times gives the following account of the manner in which a fraudulent insolvent was caught in his own net:— We have considerable pleasure in giv* ing the following particulars of the exposure of a debtor's unsuccessful attempt to defraud his creditors. A cook, who did a contractor's business in Dunedin, called his creditors together and offered them ?s 6d in the £. This was refused, and he consequently filed his chedule and commenced the ordinary procedure of going through the Court. Mr E. H. Leary was appointed Trustee by the creditors, who kept him well posted up regarding the grounds for their belief that the debtor was sufficiently solvent to pay all his debts in full. Mr Leary gave notice of the debtor's bankruptoy proceedings to the manager of tbe Post Office Savings Bank, and all the other Banks at Dunedin, though he was not than actually aware that the swindler had any money in any of them. Things appeared to worfc very smoothly for 'the debtor, and the creditors accepted 10s I in tbe £, and gave him his discharge. The i trap worked admirably, and the swindler was. caught. Thinking that he was now quite free, his wife went to the Post-office Savings Bank and demanded the handsome balance (over £100) there standing to >he? credit. To her great surprise, she found that though Mr Leary had not actually been aware of the plant, yet he has been too smart for the swindling pair. Mr Leary had so nicely managed the estate, that neither the debtor nor his wife— though the money bad heen banked in her maiden name— could get any part of the sum without Mr Leary'a assistance. The humiliating alternative had to be adapted. Accompanied by his wife, the debtor went to Mr Leary and said, " You must come with us to the Postoffice Saving Bank before we can get this money out." They found that bounce.

had no good effect. The fraud was exposed. The swindler paid his creditors in full, and all the expenses connected with his brief whitewashing in the Bank* ruptcy Court, and he had to be content with the balance. In this case the biter was severely bit. For £100 worth of debts ho had to pay no less than £135. In this schedule he had the temerity to state his assets as not over £30. Snch ah example as the foregoing should lead creditors to be very careful in acoepting offers of a fraction in the £ without obtaining the services of an experienced agent to look after their interests. However, this is by no means the first time a swindle has been exposed. The lesson ahould have a beneficial effect.