FINANCIER ON TRIAL.

Taranaki Daily News, 16 September 1922, Page 5

FINANCIER ON TRIAL.

CHARGES OF FRAUD. CASE AGAINST G. L. BEVAN. By Telegraph.—Press Assn.—Copyright. Received Sept. 15, 8.30 p.m. London, Sept. 14. The hearing has begun of the charges of fraud against Gerard Lee Bevan, ex-chair-man of the City Equitable Fire Insurance Company, who was arrested in Vienna some months after the failure of the company. An accountant gave evidence that Bevan at first demurred when asked to facilitate the inquiry into the affairs of the City Equitable Company. Then he produced an out-of-date list of investments. Witness was subsequently given a new list, which altered things for the worse. Witness informed a meeting of insurance managers, at which Bevan was present, that the assets would probably only be realisable at a heavy loss. Bevan suggested that he knew a financier who inight find the money to support the company, but the suggestion proved resultless. The balance sheet did not disclose the financial position of the company. At the preliminary trial, Sir Richard Muir, K.C., said that deception and fraud were the essence of all the charges. The prisoner was obviously a speculator in shares. He emphasised how Bevan completely dominated the companies with which he was connected, and described him as one who gilded silver to make it pass as gold. Quoting instances of alleged fraud, Sir Richard Muir said that in one balance sheet a debt of £319,000 was set down as only £51,000, while a supposed investment of £189,000 in Treasury bills was baseless.