HE ROBBED PETER TO PAY PAUL

NZ Truth, Issue 1215, 14 March 1929, Page 5

HE ROBBED PETER TO PAY PAUL

Hopeless Muddling That Led Batchelor Into Thorny Path of Crime

ABSCONDING SOLICITOR GOES TO GAOL

(From *' N.Z. Truth's" Special Christchurch Representative) Less than seven years ago, John Black Batchelor, an educated, active young man about town launched out m Christchurch on his qwn, account m the legal prof ession with that lofty ambition which stamps most of the recruits to the tf most honourable calling,'' the members of which, by tradition, hold a profound contempt for shady business practice, and set a standard for honesty and integrity. To-day, Batchelor, through his own misdeeds, is a broken reed m the legal world. With the passing of d little more than six years came disaster and ruin, with the price to be paid for the violation of a trust.

THE usual safeguards provided for" .: the security of the -public were once easily swept aside, .and he ' chose the suicidal policy of. using one client's, money to bolster up . a deficiency m another client's account. On his own admission his business, goon 'after its commencement, fell into i a hopeless tangle. His books were, never; written -up properly; they were meaningless documents which never disclosed his true position, and his position drifted from bad to worse., • In his vain effort to recoup losses he loaned money on doubtful securities at a . high rate of interest, he also lost money through, the dishonesty of a servant — and eventually grovelling m the dungeon '"of despair, he saw no way out; of- his difficulties and decamped leaving many of his clients the poorer for his going." It might have been merely coincidence that Batchelor, a hunted criminal, m his endeavor to hide from his pursuers,' assumed the name of a well-known" Canterbury, •and international footballer. However, from the moment Batcheior decided to put as much land arid water as he could between himself, his lamenting clients, and the New Zealand police, he; was known as "Jack Harris," and was living under that?, name at a boarding-house m Port Melbourne

These defalcations by the clerk were only partially made good by Batchelor, though he led 'the auditor to believe that he had reimbursed the. whole amount. . . . -The portion that was replaced was mostly- out of other client's money which he hoped to replace from the profits from the business. Through the faulty bookkeeping system, Batchelor alleged that he had to rely largely on his memory, and deficiencies arose m his trust account through several clients having been overpaid. . From 1925 onwards he had to smother up deficiencies m the Trust account, and accomplished ' this by a continual transferring of money from accounts, m cre.djt to accounts m debit. . . .•• / "It was not hard to deceive the auditor m this respect, said Batchelor, "as the securities were never checked from the ledger accounts." ■ . From this stage' Batchelor seemed to be working on a system of Peter paying Paul, for when money, fell due to clients he , would borrow from . other clients on the pretext of having urgent securities offering. He paid premiums m addition to high rates of interest for the money for* short periods, varying from £20 to £100 on loans of £200 to £500 for periods as short as two and three months, and m addition to interest as high as .ten to fifteen per cent. Grasping at any passing straw, Batchelor also speculated unsuccessfully m house properties, and, instead of assisting, it made the position worse. Batchelor fell m still deeper when, through being unable to keep a promise to finance two proper nes, no was forced into purchasing them, one at £1,450 and the other at £85,0, which, he claimed, was much m excess of their actual value. As a blind to keep favor with a client who was becoming suspicious of. certain investments, Batchelor purchased from him a car for £250, which he asserted was worth only £100. In 1927 Batchelor persuaded his , wife, an accomplished bookkeeper, . to work at the office and help him unravel the tangled state of his accounts, and for the first time since commencing practice, he learned that the business was producing a net profit, of £25. So far as the claims of Leonard Percival Voice, and Mrs. Georgina Marie Cairns, m ' connection with which, he was charged, were concerned, Batchelor declared that their money, amounting, m the aggregate to £1,286, was paid into, his trust account, was mixed with other trust funds, and : was used , to meet other trust obligations. He denied that any of his clients' were defrauded for his own personal gain or amusement. ;■ "When I left Christchurch," lie said,

'T had. baVely enough money to enable me to leave the country and my wife and 'family were practically penniless and dependent on relations and on my wife's own earning. capacity." '. : After being five times, remanded, and remaining m custody since his arrest through the refusal of the Christchurch magistrate to entertain counsel's plea for bail, Batchelor made his appearance m the Christchurch Police Court. . ■ He pleaded guilty to committing theft by a violation of trust m applying a sum of £986, the property of Leonard Percival Voice, to a purpose other than for which it was intended, and to a similar charge m respect of £300, the property of Georgina 1 Marie Cairns. ' . A further charge of the theft of £986 from "Voice was withdrawn on the application of Mr. E. S. Bowie, counsel for Voice. « Batchelor was represented by Mr..D. W; Russell, and Chief- detective J. Carroll prosecuted. ' : . "Voice, a f elmonger, living at 11 Everard Street, Spreydon, was called' by the police,' and stated that Batchelor acted as his solicitor to negotiate for the purchase of a house m Spreydon. •<■« ■■» ;, A. deposit of £50 was paid to the vendor's solicitor, Mr. A. S. Nicholls. and the balance of £986 was paid by "Voice to Batchelor by cheque to be immediately, paid over. Some time later. Voice learned that the money had not been , received by the vendor, -but Batchelor's . excuse was that the money. would not be ac-. cepted owing to a dispute over two weeks'- interest. This, howe vc r, Voice had already settled with. »the vendor. At 3 o'clock that afternoon Batchelor tendered a cheque to Nicholls for £986, but when it was presented at the bank it was dishon-: ored. : : . ■ Eachj. time Voice saw Batchelor about the matter he was^ evasive, arid, on Wednesday, August- £, Voice placed the matter m the hands of Mr. C. S. Thomas to act. on. his behalf. 1 ■■■,' Evidence of a ; corroborative., nature was . given; by Alfred Stephen Nicholls, solicitor, for : Fullwood, the vendor of the house. : ' .-.,■■■-'-"■ . ' ■ - ,' ♦' He stated. that Batchelor's cheque for the amount of the bal- , ' ance agreed upon for' the settle- /: ment between Voice and Fullwood:. > ;<*' had three .times ben presented at ' - the ■'■'b^h'k, and on each occasipn ; ;: ; .was dishonored. ■ ; The second . charge concerned >ait amount of £300, due as a second mortgage by Mrs. Gebrgina Marie Cah-ns, wife of Joseph Cairns, of 48 Battersea. Street, Christchurdh. . The mortgage fell due on August 1, and on that day Mrs. Cairns paid the amount, plus £2 legal expenses, to Batchelor, to forward it on to J. T. Ben and "Co., agents m the matter for the mortgagee. r „ Mrs. Cairns learned two or ; , three

days later that the money had- not been paid In, and at a chance meeting on the street with, : Batchelpr, she was informed that everything would be all right and '^he had" nothing to worry~ about. : , ; ■•. ■ i . ' ' "However; ishe^ ;. never : saw Batchelor again, and as" far as she knew her mbney' was a loss as she had received none of it back. The next witness was Charles Henry Hart, licensed land broker, trading under the title of . J. T. Bell and Co., Gloucester Street. He stated that Batchelor called on August 4 after banking hours and gave witness a ; cheque on behalf of Mrs. Cairns's mortgage, drawn on Batchelor's trust account. The cheque was banked on Monday, August 6, and was returned the following day as dishonored. None of the : money had been received since from Batchelor. Evidence' was also given by Constable Lester James Brazier, who went |to Melbourne, and sue- , cessfully applied for an extradition order for Batchelor who was living under the name of* Jack Harris. ''•_... To Mr. Russell, the constable :stated that Batchelor; off ered no trouble, and had been m custody since his arrest m Melbourne ,on provisional warrant on January 4. ,

llllllllllllllllllllllhlllllllllllllllllllllimilllinillllllllMllllllMllllllllllllMlllllMlllllll Brazier, said he understood that Bateheloiv had been granted bail m .Melbourne, but had not exercised the privilege, i . . , : Evidence to the effect that Batchelor 'had declared that statements made to the police were true, and that he intended pleading guilty to the two charges, was tendered by Detectivesergeant Edward Francis O'Brien. Batchelor formally pleaded guilty and was committed to the Supreme Court for sentence. - When the usual' request was put by. the clerk whether he had anything to say v Batchelor handed m a statement containing a letter from the Official Assignee covering the result of his investigation into Batchelor's affairs. He stated that though the exr aminatiqn had been; carefully done it; ; could not be very* complete ow- : jng to this incomplete way m. which the accused's records had. . been kept. / :The letter supported m most m.- . .stances the statenient made by V-, Batchelor to the police concerning Cvhjs' financial transactions. (li; lt; was found that £312 was paid out #n ;account of alleged settlements m cpHlrt actions; ijiat the; former . employee's defalcations, approximately to £120; that about £1200 was paid m over-payment of trust settlements due to lack. of proper; bookkeeping. ' Sentence Passed l^Vhen Batchelor appeared for -sen;, teiice, his counsel, Mr. ' F. D. Sargent; ;plea:ded haroV for leniency. ■ ';.•- Counsel stressed, the fact that Batchelor's difficulties -had not been brought about by riotous living, but entirely through lack of business experience. . • ' .. . . . He admitted that the accused was blameworthy m not having sufficient moral courage.to face his position when disaster' overtook him, but it" was inevitable that he would be struck off the roiT and his future m the profession was gone. . . The Crown Prosecutor, Mr. A. T. Donnelly, stated that Batchelor had commenced practice as a young man with the capacity of getting business, but with a good deal of ignorance, and when he found things m a niuddle he embarked on a career of dishonesty. The statement the accused had made was an impudent admisaion of this, and his conduct had been inexcusably dishonest since 1924. •' , v' "I am, hot satisfied that there are any circums'tances'io justify me m ex-, tending leniency tp'the prisoner," said .Mr .■:■■■•' i Justice" Adams .m sentencing Batchelor. to 'two years' reformative detention. ; . ; ." . "The . crime has a serious effect on the. reputation and business of others carrying on m an^ honorable -way, and brings most undeserved suspicion arid mistrust on the profession."