Cosmetics Case BANKER’S EVIDENCE OF WITHDRAWALS

Press, Volume CVI, Issue 31128, 3 August 1966, Page 3

Cosmetics Case BANKER’S EVIDENCE OF WITHDRAWALS

£30,300 In Cash, Mostly

In £1 Notes

A'ew Zealand Press Association)

AUCKLAND, August 2.

The three principal officers of Leidrum and Hartnell, Ltd., made cash withdrawals totalling approximately £30,300, much of it in £1 notes, from the company account, a bank official said in the Magistrate’s Court at Auckland today.

Earlier the Court heard a witness describe how he found a suitcase, stuffed with documents, books and letters belonging to Leidrum and Hartnell, Ltd., floating in the Hauraki Gulf. The evidence was given during the taking of depositions for charges against two Australians arising, according to the Crown, from a period when they were principals of Leidrum and Hartnell.

They face 18 charges of false pretences and 17 charges of attempted false pretences, involving a total of £62,272, and charges of attempting to destroy and conspiring to destroy company documents. The two, Patricia Imelda May Keane, aged 28, a secretary, and Noel James McGurgan, aged 35, a company representative, have both elected trial by jury on all charges.

Lionel Stanley Ormandy, copies of the records.

assistant-manager of the National Bank at Jean Batten place, Auckland, said Robert John Gardner came to him in February to open an account in the name of Leidrum and

Hartnell. Gardner produced a letter of introduction from the Rural Bank of New South Wales and opened the account with £lOOO in travellers’ cheques issued by the same bank. Ormandy rang the manager of the Rural Bank of New South Wales in Sydney and as

a result of the discussion accepted both the cheques and the letter of introduction. The account of Leidrum and Hartnell could be operated

either jointly by McGurgan and Keane or by Gardner by himself. Ormandy read out a list of the transactions of the account and produced photostat

He detailed the considerable sums which his records showed as having been paid into the Leidrum and Hartnell account from throughout the country.

Ormandy also gave details of the withdrawals made during April, May and June. The records showed that approximately £33.000 was paid out—all but £2670 of this in cash. Many of the cheques, including those for several hundred pounds, were paid in £1 notes.

Cheques totalling about £25,000 were signed by Gardner and others totalling about £7OOO by McGurgan and Keane.

More than £25.000 was withdrawn by the three during June alone.

t ! Cheque Dishonoured Early in May, Ormandy said, he had reason to inquire from the Rural Bank of New South Wales about the Australian company of Leidrum and HartI nell. As a result he rang Gardner and asked for an assurance that the company had gone into liquidation voluntarily. He made furthei inquiries of the Rural Bank and passed on information received to various branches and other banks to pass on to customers who had received opinions!

and reports from their bankers.

No satisfactory reply could! be obtained from Gardner and on June 7 Ormandy said he was forced to dishonour a cheque because the effects of the company were not clear. Ormandy said he rang Gardner on June 7 and said he felt that as confidence between banker and customer had been lost he could no longer act for the company. On June 13, Gardner withdrew £2856 2s 2d in cash leaving only a 10s closing fee in the account which was duly closed the next day. Suitcase In Sea Ivan James Medland, from the Salvation Army Institute on Rotoroa Island and skipper of the motor-vessel Mahoe, described how he was returning from the island to Auckland when he saw a suitcase floating in the water. Medland said he turned the ship about and picked up the ; case with a boat hook.

He opened it to see who it belonged to and found documents, receipt books, letters and pay and bank books. The

name of Leidrum and Hartnell was on the receipt and other books.

A telephone number was also found. He telephoned the company when he reached Auckland. A woman at the other end of the line said someone would be sent down to pick up the case. He then left the case with his second-in-command. ! Medland said he saw the (suitcase a week later at the i Central Police Station and (also saw documents similar Ito those he had found in the I suitcase.

Stanley Morris Roy Aldridge, who was with Medland, said that about 10 a.m., after the Mahoe had berthed, he handed the suitcase to a Leidrum and Hartnell office girl and was given a receipt for it. Advertising I John Douglas Henderson, an accounts executive from Cassrels Advertising, said he inserted advertisements in North Island newspapers on behalf of Leidrum and Hartnell (N.Z.) Ltd., on March 15. At the beginning of April, he was asked to organise the insertion of “agency for sale” advertisements in other newspapers and also repeat the! same advertisements which I had already appeared. In the middle of April. he| said, he was asked to organ-1 ise insertions for “agency for! sale” advertisements in South I Island newspapers. Gardner' handled this advertising for Leidrum and Hartnell.

In early May he went to see Gardner and discussed with him aspects of Leidrum and Hartnell’s advertising campaign.

He understood Gardner wanted him to begin a campaign beginning at the end of June and Intimated that £20,000 would be available for three months.

Newspapers, radio, cinema and women’s journals were to be the medium, he said. When Gardner asked about the possibility of television advertising. Henderson said he told Gardner there was no prospect of advertising on television until March, 1967, because all available time had been allocated up to then, by the Broadcasting Corporation. Later, he prepared draft schedules for the types of advertising discussed with Gardner. However, there had been no arrangements made to proceed with the suggested campaign, and a week after the discussions he ’phoned Leidrum and Hartnell, in-: tending to ask Gardner what) steps he would like Cassrels to take.

He could not get in touch with Gardner and had not heard from him since.

Henderson said he had previously submitted drafts to Gardner, who agreed the campaign should be commenced at the week ending June 25. Just over £lO3 remained to be paid to Cassrels, he said. This sum covered the third month of advertising agencies for sale.

Today was the sixth day of the hearing which will continue tomorrow.