HUGE FRAUD ALLEGED

Press, Volume CI, Issue 29747, 14 February 1962, Page 15

HUGE FRAUD ALLEGED

£1,000,000 Involved (N.Z.P. A. ‘Reuter—Copyright) MELBOURNE, Feb. 13. The public had been given the false impression that a man had £17.000 worth of paid-up shares in two vend, ing-maohine companies, the Crown Prosecutor, Mr J. Leckie, said in the Melbourne Criminal Court today. But the man. Victor James Varney, aged 31, director, of Toorak, a Melbourne suburb, had not paid for any shares in the companies, he said. Varney, five other men and three companies have pleaded not guilty to charges of fraud and conspiracy. The other men are Zdnek Kempny, aged 32, salesman, of Melbourne; Stanley Wills Kerr, aged 41, a salesman, of Sydney: George William Boyd, aged 41, of Melbourne: John Joseph Mohr, aged 31. of Brisbane: and John Howard Kinnear, aged 50, a solicitor, of Melbourne. The companies are North American Vending Machine Company, Pty., Ltd., Vend Rite Corporation Pty., Ltd., and General Vending Corporation Pty., Ltd. The Crown alleges that the men and the companies "siphoned off” about £1.000,000 from the public investors.

It claims that the principals of the alleged fraud obtained amounts ranging from £240,000, in the case of Varney, to £lO,OOO. in addition to their salaries and commissions.

They are charged with having at Melbourne on February 1. 1959. and between then and January 10, 1961. conspired "to cheat and defraud such persons as might be induced to pay money under contract for coinoperated machines, on such false pretences and wilfully false promises as from time to time appeared likely to be effective.”

They are also charged with having conspired to receive money so obtained.

Mr Leckie said today that a variety of false representations were made to induce people to invest in the companies. He said the accounts were allowed to build up until money was needed—to provide Varney with £240.000 or Kempny or Mohr with a house each. It appeared that money was put in when an investigation seemed likelv It was in fact futile to check ’he bank statements as there was no prepared record of contracts.

The hearing was adjourned until tomorrow.

Use Of Park.— The Canterbury Cricket Association has applied to the Victory Park Board for Lancaster Park to be made available on April 6 and 7 for Canterbury to play the Hawke Cup holder. Nelson. This was decided at last evening’s meeting of the association.