ARCH-CRIMINALS.

Auckland Star, Volume LXIV, Issue 196, 21 August 1933, Page 7

ARCH-CRIMINALS.

ARSON CONSPIRACY.

Maximum Penalty on Leader of

Dangerous Gang. COLOSSAL INSURANCE FRAUDS. (United P.A.—Electric Telegraph—Copyright) (Received 1.30 p.m.) LONDON, August 20. In connection with the fire insurance conspiracy, Leopold Harris was sentenced to 14 years' penal servitude, David Harris to five years, Gould to six years, Riley, Marks, Ball, Priest and Jarvis to three years, and the others to nine to 21 months. The judge said society was rid of a number of dangerous criminals who had headed an immense, widespread conspiracy which might have brought many others to the clock. One who had confessed had died on the following day, whether accidentally or otherwise he did not know. While Mr. Justice Humphreys was sentencing the prisoners their wives and female relatives could be heard sobbing outside the Court. The judge characterised Leopold Harris as an arch-villain and said he had no doubt made enormous sums by the conspiracy, most of which apparently he spent on tho Stock Exchange and elsewhere. Harris received the maximum penalty for arson upon the 10 counts to which -he had -pleaded guilty. The judge emphasised the appalling danger to life from these incendiary iires. One of the accused, a septuagenarian silk merchant, William Herivel, who was sentenced to IS months' imprisonment, fainted. Tho terms to be served will aggragate 40 years for all the accused. Tracking Down the Gang. The "Daily Telegraph" says that the full significance of the trial can only now bo revealed. In the opinion of leading insurance officials it has saved British lire insurance from a grave disaster, arising out of the lack of confidence. Tho trial has scotched a racket which was rapidly assuming Chicago-like proportions, the paper states, and which in tho past few years has cost British insurance companies £2,500,000 in .payment of fraudulent claims. Even now oaly a small proportion of the criminals concerned have been brought to justice. It is known that at least 100 persons were directly or indirectly concerned, but to prevent further confusion and complications only 10 were put in the dock. The capture* of the fire-raising gang was the result of several years' investigations by Mr. William Crocker, solicitor, a specialist in insurance law employed by Lloyd's underwriters and loading fire insurance companies. He discovered the system which the gang followed. A "dummy" business was created in the name of one of the gang and was stocked with inflammable material. Then a grossly excessive insurance policy was negotiated and the premises subsequently were fired by another member of the gang. Tho inflated claim against the insurance company was supported, if necessary, by forged invoices and then presented. Each member of the gang was shadowed for many months and his every movement was watched. It is estimated that the gang had made £500,000 a year for many years. More than 100,000 documents were handled in the course of the case.

As the result of the trial, immediate new safeguarding regulations are to be made- in respect to fire insurance policies, under which conspiracy will be impossible.