LANDS DEPARTMENT FRAUDS.

Sun (Christchurch), Volume I, Issue 247, 21 November 1914, Page 10

LANDS DEPARTMENT FRAUDS.

COSTELLO SENTENCED.

THREE YEARS' IMPRISONMENT,

Andrew Costello, a clerk in the Land; Revenue Department, who had pleaded guilty to extensive frauds, was placed be fore his Honour Mr Justice Denniston iu the Supreme Court, this morning, for sentence.

Mr S. G. Raymond, K.C., on behalf of the Crown, said that there were six charges against the accused, the defalcations totalling £1922 19/9. He had also confessed to other thefts, making a grand I total of £12,679 18/-. He had furnished the Crown with all particulars of the thefts, which covered a period of some eight years. In the course of his employment he received the rents of some 5000 Crown tenants, the annual revenue passing through his hands totalling about £250,000. Mr J. A. Cassidy, on behalf of the accused, said that Costello had been in the Department for 17* years. For many years large sums had been passing through his hands. In one ease he had received a cheque for £150,000, and receipt for £60,000 was not uncommon. Eight or ten years ago he became involved with money-lend-ers, when his salary was £l2O a year. He was a married man, and had to support his mother and sister. He started defalcation in a small way, and in the hope of making good by a lucky stroke of fortune, he commenced betting. This went on until this year, when the Auditor found an irregularity, and then he made a clean breast of the whole matter.

In answer to a question by his Honour as to how he could have gone on so long without being detected, Mr Raymond said' that the accused, had a system of carrying forward accounts. When a tenant made a payment he"would< not credit it in the books, but carry on the debt for same time. He never left a debt over for more than six months. On some occasions he paid out of his own pocket the 10 per cent, fine imposed for non-payment of rents. He was using payments coming in for keeping up payments made months before and "pocketed." Mr Cassidy said that as time went on the accused got deeper and deeper, but always hoped for a chance to get himself out of trouble. *His Honour: How did he live?

Mr Cassidy: Apart from this he was a decent, respectable, young man, and everyone was surprised to hear of his defalcations.

Kis Honour: Hoav did he spend this money:

Mr Cassidy: In betting, your Honour, in the hope of getting it back again. His Honour: But how can one spend £12,000 in this -way? He must have long since gone past the stage when he had any hope of making up the amount of his defalcations, and yet he kept on. Mr Cassidy: Perhaps he had not the moral courage to stop. His Hojiour: Oh, nonsense. Did he begin by gambling? Mr Cassidy: He was getting a very small salary, your/Honour. His Honour: 'But people do not seek to make up small, salaries by gambling. I cannot see why I should not treat this case as a very serious one. The sentence of the court will ~be three years'imprisonment. , i.