FAILED TO ACCOUNT.

Auckland Star, Volume LXIII, Issue 72, 26 March 1932, Page 7

FAILED TO ACCOUNT.

INSURANCE CANVASSER'S LAPSE.

NO CRIMINAL INTENT.

COURT EXTENDS LENIENCY.

Arrested by Detective O'Sullivaii on two charges of fraudulently omitting to account to the T. and O. Insurance Company for sums of £7 and £33 3/3, Richard Faulkner Lowndes, aged 40, canvasser and collector, appeared before Mr. E. C. Cutten, S.M., in the Police Court this morning. He pleaded guilty to both charges. Detective Sergeant Kelly said Lowndes had been employed as canvasser and collector by the T. and G. Company for the past twelve years. He received no salary, but a commission of 12J per cent on all moneys collected, and a further percentage on new business secured. On February 8 he collected £7, while between February 22 and 29 he collected various sums amounting to £33 3/3 and failed to account, converting the whole of the money to his own use.

"Lowndes has been up against it and got into the hands of moneylenders," added Mr. Kelly. "They threatened to seize his furniture, which was the subject of a bill of sale, and he took his employers' money to pay them. When things got too bad he told his firm and they gave him in charge. Lowndes has been quite frank over the whole thing and immediately afterwards his guarantor made restitution of £20, agreeing to pay the rest at the rate of £5 per week."

"This is not the usual case of a man embezzling with criminal intent," said counsel. "He has been employed for 12 years, and is considered to be one of the best collectors and canvassers in the firm. He has handled thousands of pounds during that time, and has never been a penny short. He does not gamble or drink, and as the result of the depression he has had little to live upon. He and his family have- just managed to exist, and that is all. Things got worse and worse, and he had to borrow money on his furniture. The moneylenders threatened to put the bailiff in, and he was led to believe that if he paid he would not lose his furniture, but even after he paid a good sum to them they seized his furniture."

Counsel said Lowndes hoped to clear off the money which was owing and get a ne<V bill of sale, so that he could return the money he converted, but, not having his furniture, he was not able to do this, so he told the manager of his firm. After remarking that Lowndes suffered as the result of war injuries, counsel said that it was not the case of a man who acted with any criminal intent.

"He was worried, and under tremendous pressure about losing his home," continued counsel. "The most extraordinary part about his job is that when a person insured is unable to pay the weekly industrial instalments of insurance, Lowndes has to pay in six times the amount for which default is made. That's what I am instructed. In one case, where a woman in Grafton could not pay 15/, he had to pay his firm £4 10/, which sum was deducted from his earnings. It can thus easily be seen how he got into difficulties and had to borrow money."

The magistrate said he was satisfied it was not the usual case of embezzlement, and added that he would not fine accused or send him to gaol. Lowndes was convicted and ordered to come up for sentence if called upon, an order for restitution of the balance, £22, being made.