BOGUS BUILDING SYNDICATE.

Taranaki Daily News, 28 May 1921, Page 12

BOGUS BUILDING SYNDICATE.

? RUN BY ONE MAN SMALL INVESTORS VICTIMISED. It was reported recently that, in the case against Thomas Cockburn of falsely representing himself as an owner of timber rights at Dannevirke, and obtaining money from various people, by representing himself as head of the Te Arbodie Building Syndicates, a verdict of guilty was returned. Cockburn was sentenced to three years’ hard labor on each charge, sentences to be concurrent. Cockburn was charged with having, on June 10, 1920, obtained £l5O from one Edward I. Parrington by falsely representing that he wa«s the owner of timber and sawmills at Dannevirke; and (2) with having on June 10, 1920, committed theft of £7O in money, the property of E. I. Parringtoii. The Crown alleged that Cockburn rep resented himself to be the manager and secretary of the Terabidoc Building Syndicate, and as such obtained money from Parrington and others on the understanding that he would build houses for them. He was the syndicate, the Crown alleged, and possessed no capital; but he had employed a supervisor, whose duty was an unknown quantity, save that, according to Chief-Detective Ward in the Magistrate’s Court, “he had to inform callers at Cockburn’s office that the manager was not in.” The Crown suggested that there never had been a mill at Dannevirke, and that the accused had on no occasion endeavored to arrange for the construction of the house for which preliminary payments had been made. The Crown .alleged further, that the accused had “been living upon the money obtained in the manner aforesaid.” Subsequent to certain civil actions, said the chief detective, it was found that the accused had not sufficient money to meet orders made by the Court.

• FINANCIAL OPERATIONS. In the course of evidence Parrington told of an agreement with the accused whereby Cockburn had guaranteed to build a residence on a partly paid-off section at Ngaio for the sum of £1350; and to pay off the balance owing op the section—£7o—provided that witness paid a deposit of £l5O, which was paid accordingly. Nothing further was done in respect of the building operations, and the sum owing on the section was not paid. Evidence that they had paid deposits in similar circumstances was given by Mrs. M. Dawson, Maurice Allison Tremewan, Robert David McGillivray (the latter paying various deposits to a firm of land agents on the understanding that accused would build for him), and Catherine Smith, Robert Whyte, and his son, Herbert S. G. Whyte, said in giving evidence that they understood the syndicate was financially strong, otherwise they, as land agents, would not have entered into any negotiations with the accused. Detective Torrance swore that he had trouble in gaining admittance to accused’s house, after h'aving found him “out” many times at the office. The evidence of Thornton, previously referred to as the supervisor, was to the effect that during the time he had been in Cockburn's office there had been only one house at Northland to supervise. He prepared plans of houses; however, the value of which had been about £20,000. He received in wages only £63 during the year. Up till December he had considered the syndicate genuine enough, but after that date he declined to offer to become a member. 'Cross-examined by Mr. Scott, Thornton said that he and accused had visited a mill which was offered for sale, but witness had advised accused against buying it; whereupon Cockburn had said that he would buy it himself, although the sydnicate had turned it down. In December, however, the deal fell through. Had accused got the mill he could have fulfilled the orders. “That was all we were waiting for,” said the witness. *

“The point is,” remarked the judge “whether Cockburn falsely stated that he owned mills, and thus induced the complainants to make the preliminary payments.”

Frederick William Vare, mill company’s secretary, said in evidence that he had called off a deal with the accused, who hdd an option over a mill near Dannevirke, on account of information received after an investigation of the accused’s financial standing.