Bankrupt Accountant Took Farmers’ Money

Press, Volume CII, Issue 30214, 20 August 1963, Page 10

Bankrupt Accountant Took Farmers’ Money

(Neio Zealand Press Association)

PALM. NORTH, Aug. 19. A bankrupt Palmerston North accountant and former member of the City Council, Raymond Pierpont Morgan, married, aged 50, pleaded guilty in the Palmerston North Magistrate's Court today to two theft charges by failing to account for £1643 10s required to have been paid on behalf of two farmer clients. He was convicted and remanded to August 26 for a probation officer’s report Bail was granted. Morgan was charged that on or about June 15, 1957, and between that date and April 25, 1963, at Palmerston North, having received 15 cheques amounting to £4566 Is signed by J. W. Davison, on terms requir-

ing him to account for or pay the same to the Inland Revenue Department on behalf of Davison, he fraudulently converted to his own use the sum of £1513 14s 4d. A second charge was that on or about May 30, 1962, and betwen that date and May 16, 1963, having received a cheque for £250 signed by M. Lyons, on terms requiring him to account for or pay it to the Inland Revenue Department on behalf of Lyons, he fraudulently converted to his own use £129 15s Bd. Detective Senior-Sergeant A. W. Baker said that the two complainants were farmers whose accounts were kept by Morgan. In May, 1962, Lyons knew that he was likely to be absent for a long period, whereupon Morgan asked for a blank cheque for income tax to fall due for the 1961-62 year. Morgan filled in the cheque

for £250 and paid £l2O 4s 4d in tax on behalf of Lyons, who on his return to the city received a tax assessment, which left £129 15s 8d not accounted for. In the case of Davison, said the detective, Morgan’s alleged offences ranged over a period of six years. During that time he received 15 blank cheques which he filled in for a total of £4566. Three of the cheques were paid direct to the tax department, but the remaining 12 were paid into Morgan’s account. After Morgan had filed a petition in bankruptcy last June, another accountant had found that the amount paid by Morgan was less than that paid to him. Morgan had admitted to the police that he had not paid accounts for Lyons, but explained that he had an overdraft at the time and would not have been able to pay. In the case of Davison he had obtained more money than necessary for income tax and did not pay it all in.