SENSATION IN FINLAND

Taranaki Daily News, Volume LV, Issue 229, 15 February 1913, Page 1 (Supplement)

SENSATION IN FINLAND

BANK MANAGER'S GIGANTIC FRAUDS.

Consternation lias been caused in the Finnish financial world, by what would seem to be the greatest swindle ever perpetrated in the commercial history of Finland. The affair (says a Reuter message from llelsingfors) lias for the moment wclipsed the all - absorbing anxiety and eagerness with which the developments in the political feud with the Russian Government are followed.

M. Nils Idman, manager of the Tamraerfors branch of the local Forenings Banken, was suddenly detained a few days ago by the police upon orders received from the head office, and, after arrest, the safe of the branch under Idman's charge was opened, but it was found to be empty, although it should have contained, according to the books, securities for loans to the amount of £42,000. Idman, it appears, had devised an ingenious scheme. When customers were granted loans against good securities, the latter were, of course, deposited in the Safe; but Idman abstracted them soon afterwards and obtained loans on them on his own account from other banks. His bank will have to make good all the losses, the total amount of which is stated to be something between £200,000 and £500,000, including all the dishonest deals with private people. Books and cheques have been forged, and months mar elapse until everything is cleared up, if this can ever be done. The number of firms and wealthy private persons who have been partially or totally ruined is stated to be about 200.

Ail elderly widow was left, by her husband £40,000. Idman took over the charge of the money three years ago, and has actually never given any receipts for it. . So strong was the belief in him that those documents were never asked for. There is not a penny left for the poor woman, who is eighty years of age, and friends have secured her a place in a home, which is nothing but a better-class workhouse.

A director named Snellman, who had charge of the Nordiska Bank, the second in importance in Tammerfors, committed suicide two days after Idman's arrest. Though that bank is stated to be untouched by the fall of Idman, M. Snellman's personal loss is reported to be £IO,OOO. He had been induced to hand over to Idman securities for £4OOO.

Two girl cashiers are also in custody. It is the habit of practically all the Finnish banks to employ women cashiers. The two women confessed amid tears that they had known of numerous irregularities committed by Idman, who seems to have exercised extraordinary influence over them.

Even the State Bank of Finland has not escaped being dragged (in a way) into tliis regrettable tangle. The Forenings Banken is a very solid institution of some 50 years' standing; with a fully paid-up share capital of £1,200,000 and untouched reserves amounting to about £600,000. Shares, nominally worth £4, were sold lately at £lO. After the disaster they dropped to £9, but are already on the way back to the level they have maintained for many years—viz., £lO.