FRAUD ALLEGED

Evening Post, Volume CXXVIII, Issue 94, 18 October 1939, Page 10

FRAUD ALLEGED

ADVERTISING MANAGER

MISSING FROM DOMINION

ADJUDGED BANKRUPI

Raymond 'F. Nelson, advertising manager for Reuters, Ltd., has beea adjudged bankrupt in* the Supreme Court by Mr. Justice Smith, the affidavit of tlie petitioning creditor alleging that Nelson, in possession of nearly £5000 which he was obliged to invest or account for to Stewart Dawson (N.Z.), Ltd., and others, had left NewZealand to defeat his creditors; ha had gone to Auckland, ostensibly on business, and had then written from Suva, where he had gone on a health, trip. Reuters had been told that Nelson was extending his trip to Honolulu, and it was later found that he had booked a passage from Suva to Southampton about August 13.

The application lor Nelson to be,adjudged bankrupt was made by Ernest Joseph Hocking, director and general manager of Stewart Dawson (N.Z.), Ltd., who said in his affidavit that during May and June last he gave Nelson sums amounting to £2500, with instructions to act as his agent and trustee in putting the money into suitable investments in Mr. Hocking's name. Nelson had refunded £500, but had failed either to effect any investment of the balance or to return it, and had fraudulently converted the £2000 to his own use.

Mr. Hocking said he believed that Nelson was remaining out Of New Zealand to defeat his creditors. About August 5 he interviewed Nelson .at Wellington, and Nelson said he was leaving that day for Auckland on a short business trip and would be returning within about a week. About August 8 he received a telegram from Auckland in which Nelson said he was leaving Auckland on a three weeks' vacation, but no indication was given that he intended leaving the country. A letter written by Nelson from Suva was received on August 17, saying that he would be returning to New Zealand about September 1. In that lettei he made no mention of the amounts owing, but merely said that he would call on Mr. Hocking when he returned to Wellington. Since that letter Mr. Hocking had not heard from Nelson and did not know where he was. VISIT TO AUCKLAND. As Nelson did not call as promised, Mrl Hocking said he interviewed Mr. M. H. Robinson, manager of Reuters, Ltd., who said he had returned, about August 29 from a three weeks' business visit to Sydney. When ;he left Wellington ■ for Sydney Nelson was em* ployed by Reuters on a commission basis as advertising, manager. Mr. Robinson had learned that Nelson had left Wellington about August 6, telling the office staff of Reuters that "he was going to Auckland on' business for Reuters. Subsequently a letter had been received by Reuters saying that Nekon was going to Suva on a health trip, and a cable dated August 18 said that he was extending his .trip and going to Honolulu. Nothing had since been received from Nelson, Mr. Robinson, told Mr. Hocking, but inquiries from shipping companies showed that Nelson had booked his passage from Suva to Southampton about August 13. Prior to Nelson leaving New Zealand Reuters had not dismissed him, nor had it given him. . permission to take a- holi? day or leave New Zealand. The firm knew nothing of his intention to leave the country. , WRIT FOR £2018. In his capacity with Stewart Dawson Ltd., continued Mr. Hocking, he knew that a writ had been issued against Nelson by Percy Stewart Dawson and Norman Stewart Dawson, trustees for the New Zealand estate of the late David Stewart Dawson, ,of Westminster, London, to recover £2018 6s, which had been received by Nelson in trust to remit to Sydney and credit to the banking account of the two Dawsons. He had been informed by the solicitors acting for the Dawsons that on September 29 a charging order nisi had been obtained, whereby money standing to the credic of Nelson at the Union Bank of Australia Ltd., and the Commercial Bank of Australia Ltd., in New Zealand was charged with the amount for which the Dawsons might 'obtain judgment.

The ground on which the charging order was obtained was that Nelson was absent from New Zealand with intent to defeat his 'creditors.

Mr. Hocking said he had also been informed by the solicitors that on September 6 a writ was sealed in th.c Supreme Court by the Wholesale Distributing Co., Ltd., against Nelson, for £675, received by him for the use of the company, and that a charging order nisi had been obtained on a similar ground to the other order.

Inquiries made of the Union Bank of Australia at Dunedin and of the Commercial Bank of Australia at Wellington showed that Nelson had money to his credit at both banks, said Mr. Hocking. He had been unable to ascertain the amounts, but he believed that the credits were much less than the amount due to him, and that Nelson had various other creditors whose claims greatly exceeded the credit balance. He had no security for the £2000 owing to him.

Mr. W. J. Kemp appeared in support of the petition.