FRAUD ALLEGED.

Auckland Star, Volume LXIV, Issue 30, 6 February 1933, Page 5

FRAUD ALLEGED.

SALESMAN ON TRIAL

ENDORSEMENT OF CHEQUE,

False pretences was the charge laid against John Septimus Payne, a salesman, aged 41, before Mr. Justice Smith and a juTy in the Supreme Court this morning. Accused was charged that about June 27, "by falsely representing to E. H. Pointon that he could make a profit of £40 by purchasing Duplex piston valve shares for £4 each, and selling them for £6 each, and also by representing that he had £28 in the bank and would put up a cheque for £25, he induced Pointon to endorse a cheque for £55 in order that it could be used as valuable security. Mr. V. N. Hubble prosecuted and accused was represented by Mr. I. J. Goldstine. Pointon, a mercer and clothier, of Newmarket, said that on June 27 accused called at his shop and said he had a proposition whereby he could make £40 by buying 20 shares at £4 each and selling them at £6 each. , Accused told witness that he had £28 in the bank and needed a guarantee to enable him to buy the shares. "Payne asked me to guarantee his cheque for £55," said witness. "The cheque was to be post-dated, subject to the approval of the seller. Two days later accused returned and I agreed to guarantee his cheque. Later he returned with a Mr. Hailey, the seller of the shares. Payne made out a cheque for £25 and another for £55, the latter postdated to July 29. Hailey wrote out an indemnity in favour of me, and I then signed the cheque as guarantor. Accused said the whole matter would be settled within a fortnight." Witness said that on July 14 he saw accused, who said the shares had not yet been sold. He had since found that accused's cheque had been marked "no account" at the bank. Witness had been called upon as guarantor and had met a considerable part of the cheque. (Proceeding.)