FRAUD ALLEGED

Ashburton Guardian, Volume 55, Issue 126, 9 March 1935, Page 6

FRAUD ALLEGED

"MYTHICAL" ACCIDENT CLAIMS. EXTENSIVE OPERATIONS. SEVERAL PERSONS INVOLVED. (Per Press Association.) AUCKLAND, March 8. Evidence concerning insurance claims on "mythical" accident was given in the Police Coijrt during the further hearing of extensive fraud charges in connection with motor dealers' transactions.

On Thursday 13, transactions involving 32 separate charges were investigated, and to-day four further transactions formed the subject of eight charges. The hearing will be continued on Mondays The total list of charges numbers. 59, and the sum alleged to be involved is £2506. At to-day's sitting, Alfred Ernest Hay, motor dealer, and Oscar Herbert Johnson, clerk, were charged with conspiring with Leila O'Donnell who appeared on summons, to defraud the New Zealand Guarantee Corporation Ltd., of £IOO 10s. Hay and Mrs O'Donnell were also charged with conspiring with Norman Henry Eraser, insurance assessor, aged 36, to defraud the North Island Motor Union Mutual Insurance Company, Ltd., of £57 ss. Individual charges were laid in each case against the four accused. Hay was also charged with stealing £OS on November 15, 1934, and with stealing £22, on January 19, 1935. " Evidence that he had paid £IOO 10s to Hay on receipt of a hire purchase agreement on a car, signed by Hay, Johnson and Mrs O'Donnell was given by Basil Dixon Buddie, Auckland, agent for the New Zealand Guarantee Corporation. Detective McWhirter produced evidence showing that the circumstances were similar to those in the charges heard on Thursday, and that no car had been purchased by Mrs O'Donnell. He read a statement made by Mrs O'Donnell in which she said that Hay was her brother-in-law, and had induced her to sign documents by telling her that he wished to buy 3- car, but was temporarily short of cash. He suggested that she should sign the papers and he would meet the payments. "I did not read anything I signed," Mrs O'Donnell's statement continued. "I passed on any papers 1 received to Hay. I always thought he was successful in business. I never received any money or expected any money on these transactions." <'l do not think "the country should be put to the expense of sending tins woman before a jury," said Mr F. J. Hunt, S..M'., "she has been very foolish but I do not think she had any criminal intent. She was obviously under the domination of a relative. The charge against Mrs O'Donnell was dismissed. Hay and Johnson pleaded guilty and were committed to the Supreme Court for sentence. Evidence on the second charge alleging fraud against the Insurance Company was then brought. A clerk in the Claims Department of the N.A.M.U., Mutual Insurance Company, said that in September, 1933, a proposal for insurance of a car, allegedly owned by Mrs O'Donnell, for £IOO was accepted. Shortly afterwards a claim was received for an acicdent and a report was received from the assessor, Eraser, recommending payment of £lB 14s Hd for damage to Mrs O'Donnell's car, and £3B, 10s 9d for damage to a "second ear" owned by a "Mr "Hutchison." These payments were made. Hay and Fraser pleaded guilty to the charge and were committed to the Supreme Court for sentence. The charge against Mrs O'Donnell was dismissed. The charge of theft of £95 against Hay was dismissed and on the charge of stealing £22 Hay pleaded guilty.