HUGE FRAUDS IN MINE SHARES ALLEGED

Rotorua Morning Post, Issue 5299, 11 January 1947, Page 5

HUGE FRAUDS IN MINE SHARES ALLEGED

Australian Millionaire Mentioned In Case MELBOURNE, January 10. Two Scotland Yard detectives were inquiring into large-scale frauds allegedly involving a Wesi Australian mining millionaire, Claude Albo de Bernales, said Mr. D. A. Menzies, who, appearing* for the Crown in the Pvactice Court, applied for an order to open sealed envelopes containing the private balance-sheet of the Australian Maehinery and Investment Company Proprietary Limited. Chief Tnspector E. W. Daws said

in an affldavit tha. h.e helieved Bevndales was using the company to collcct money dishonestly. | Mr. Menzies said that Mr. Daws and an assistant had almost compieted their investigations, which ! would he assisted by the inspection of the papers. The law required the auditors to deposit the private bal-ance-sheets of comnanies with the

Registrar-General. The sealed envelopes could be opened only on a court order, which couhl he grven only on - Ihe application of a company liquidaior or the AttoVney-General. Tlie Attorney-General had decided to make this application hecause Mr. Daws had said there was good ground for suspocting that the company had j been used as an' instrument. of fraud. | Mr. Daws told the court that he had been inquiring into the activities of Bernales and o hers in connection with the issue in England in 1933 of | the prospectus of Anglo-Australian Gold Development Limited. It was alleged that the. Australian Maehinery and Investment Company Proprietary Limited had sold to AngloAustralian Gold Developmen. Limited shares in six gold mines in West Australia for £82,000, but that all that was paid for 686,700 £1 shares was the transfer of six mining licences for £5 5s. each. It was also alleged that tlie assets of Australian Maehinery Limited had inereased from £52,189 to £2.180,444. The hearing was adjouvned.