“LARGE SCALE SWINDLE”

Press, Volume XCVI, Issue 28434, 14 November 1957, Page 21

“LARGE SCALE SWINDLE”

Australian Oyster Company

(N.Z. Press Association—Copyright) (Rec. 8 p.m.) MELBOURNE, Nov. 13. An oyster-growing company, in which the public had invested £689,000, had carried out a swindle on a large scale, the Victorian Legislative Assembly was told yesterday. The charge was made in a report to the Attorney-General, Mr Rylah, by Dr. E. G. Coppel, Q.C. Dr. Coppel was appointed to investigate the affairs of the company, Wollomba River Oyster Leases Pty. Ltd., and a parent concern. Oyster Development (Australia), Ltd. The investigation began several months ago after complaints from investors and others to the Attorney - General’s department about the operations of the companies. In his report, which was tabled in the Assembly. Dr. Coppel alleged that the £689,000 subscribed by the public never reached Wollomba River Oyster Leases Pty.. Ltd., "and I have not discovered what has become of it.” The report also claimed that Wollomba River Oyster Leases Pty. Ltd. had no assets, apart from three New South Wales oyster leases—and was never intended to have any and that investors paid £250 each for "growers’ rights” on one-tenth of an acre on an oyster lease. This is how the £689.000 had been raised. Dr. Coppel recommended that the two companies be wound up. He said that one action was ponding in which serious allegations of fraud were made against Wollomba River Oyster Leases Pty., and "maybe others are in contemplation.” The Attorney-General said that the Crown Law Department was taking action to carry out Dr. Coppel’s recommendation.