AN AMAZING SWINDLE

Shannon News, 10 September 1926, Page 3

AN AMAZING SWINDLE

GERMAN'S GREAT HOAX. RECORD OF 150 YEARS. EXTENSIVE FRAUD ON A BANK What was described as an amazing financial swindle was engaging public attention in Berlin recently. It was of the nature of a "Super-Koe-penickiad." In it no fewer than 22 of the most prominent industrial concerns of the country were concerned The "Daily Chronicle" correspondent told tho story as follows: —Tho hero of this almost unbelievable tale is Herr I wan Kutisker, who a few days ago was sentenced to five years' penal servitude and to a heavy fine for a swindle whereby the Prussian State Bank lost nearly 14,500,000 marks. The Judge described Kutisker as "a person of greater duplicity than any swindler known in Western Europe for a century and a-half." At the time when his name was before the public in connection with the case, arid when his dark deeds wero coming to light, Kutisker actually had the nerve to set up a concern which he called "Sales Organisation for German Industry, Limited." Its object was represented, to bo to assist German firms in doing business with Russia. Kutisker set up a "man of straw' 1 as head of this firm, and entered into negotiations with 60 or 70 industrial concerns throughout the country With 22 of them he entered into agreements for the supply of enormous quantities of goods for Russia. Kutisker for a while kept his name secret, alleging that ho occupied such a high position that such concealment was necessary. Agreements with kutisker concluded were for periods of five years, and he charged commissions, varying from 3 to 5 per cent., net merely on the total amounts, but also on business which any of these firms might do independently of. his firm. These charges he justified on tho ground that it was necessary to bribe heavily certain members of a Soviet commercial delegation in Berlin, and also some prominent Bolshevist authorities in Moscow. He managed to obtain a considerable portion of these commissions; and also ho. persuaded various firms to give him full particulars of their business doings. This information he utilised in order to make highly lucrative coups on the Stock Exchange.

One day, however, a representative of a certain firm called on Kutisker —who was still preserving his incognito. In the course of their talk_ a clerk entered the room and said, "Herr Kutisker, you are wanted on the telephone." So the secret was out. The visitor was astounded ,that he had to JJenl with such a notorious person, and boldly said thai the whole business wan a fraud. Kutisker endeavoured to put a bold face on tho situation, and produced agreements as signed by many of tho foremost German firm:?. The visitor, knew, however, that onn of these firms was doing its Russian business on its own account; so he went to the Soviet Commercial Delegation to make inquiries. There he learned that the delegation knew absolutely nothing of the whole affair, and that it must, therefore, be a swindle. The Soviet delegation then issued a statement revealing the full naturo oi the fraud, and proving that the delegation has had nothing whatever to do with Kutisker. It is not known what sums are actually involved in this affair, but the newspapers state that they must run into millions of marks. It is declared that the State attorney will take tho matter up and Kuisker will be charged with fraud against more than a tscore of Arms.