COSMETICS CASE ‘Gardner One Of World’s Best Confidence Men’

Press, Volume CVI, Issue 31211, 8 November 1966, Page 3

COSMETICS CASE ‘Gardner One Of World’s Best Confidence Men’

GNt’M' Zealand Press Association)

AUCKLAND, November 7.

The former managing-director of Leidrum and Hartnell (N.Z.), Ltd., who operated under the name of R. J. Gardner while he was in New Zealand, was considered to be one of the best confidence men in the world, a detective sergeant, John Sheehan, told Mr Justice Richmond and a jury in the Supreme Court at Auckland today.

Charges had been made against Gardner and Interpol was also interested in him, but he had not been traced, he said.

They have pleaded not guilty to 20 charges of obtaining and 16 of attempting to obtain money by false pretences, involving a total of £62,272. They are also charged with attempting to destroy company documents.

Earlier in the trial evidence was given by a number of witnesses of discussions they had with Gardner earlier this year after they had inquired about acting as distributors to sell cosmetics, ostensibly manufactured and distributed by Leidrum and Hartnell. Cross-examined by Mr L. W. Brown, for McGurgan, Sheehan said Gardner was one of several names the man used. He was wanted in several other countries. Mr Brown: There is no doubt about his international activities?

I Sheehan: There is no doubt about it. Sheehan admitted that he was familiar with some of the steps being taken by the official liquidator of Leidrum and Hartnell. He said that about £5500 had been collected from two Auckland bank accounts and was being held by the official liquidator. About £20,000 was also frozen in a Sydney account.

He admitted that no charges had been laid in respect of two distributors who had bought agencies from Leidrum and Hartnell. One man who had contracted for five and a half zones and had paid about £lO,OOO had received all his stock. Defence Case Opening the defence of McGurgan, Mr Brown challenged the Crown’s contention that the accused had made false statements in selling agencies and receiving money from people who had agreed to be distributors for Leidrum and Hartnell.

The essential ingredients that had to be proved beyond reasonable doubt by the Crown were that statements

made by McGurgan were false, that the business deals he conducted were induced by his statements, and that he had induced people to part with their money. Also, it had to be proved that McGurgan. by means of false statements, either obtained or attempted to obtain money and that in obtaining this money he attempted to defraud. “The Crown has taken its stand at the outset of the trial that McGurgan set out with Gardner and Miss Keane in a deliberate and criminal intent to defraud,” Mr Brown said. But the evidence brought by the Crown had gone only as far as showing that a legitimate business had been set up as far as McGurgan was concerned, and that Gardner had decided to empty the company’s coffers and get out.

He said that McGurgan had genuinely believed that in taking money from distributors that the company would supply them with cosmetics. McGurgan would say in his evidence that he had been employed by Leidrum and Hartnell (Australia), Ltd., and that he was told he would be required to go to New Zealand, Mr Brown said. McGurgan would say that when he arrived in New Zealand in March he found that everything had been set up by Gardner. Premises had been rented and arrangements made with manufacturers.

All McGurgan had to do was to get out and sell. He would say he was never a director of the firm and he never had anything to do with the accountancy system or the company’s finances. McGurgan would say that he knew nothing about com-

Sheehan was giving evidence at the conclusion of the Crown’s case against two Australians, Noel James McGurgan, aged 35, a company representative, and Patricia Imelda May Keane, aged 28, a secretary, former employees of Leidrum and Hartnell.

pan} 7 funds being transferred to Sydney. McGurgan understood that he would be New Zealand manager for Leidrum and Hartnell and he would probably have to stay here for two years. He had made these arrangements with his family, Mr Brown said. McGurgan In Box McGurgan, in evidence, said he was first employed by Gardner in Sydney in 1964. Gardner owned a car firm of which McGurgan later became sales manager. McGurgan described Gardner as a “genius” in selling cars. Gardner won the franchise for the distribution of two makes of Japanese cars in New South Wales. The business flourished. Gardner later sold the business and dismissed all his staff. Accused said he ran a used-car firm for several months and then took up an offer from Gardner to join Leidrum and Hartnell (Australia), Ltd. This firm operated a franchising business, dealing in cosmetics similar to what was organised later in New Zealand. He was never a shareholder or a director in the Australian company.

1 He later joined another of | Gardner's companies called < Uni-Group. This group con- : eluded a deal with the Rus- : sians for the supply of heavy I machinery, aircraft and I hydrofoils to Australia. The signing of the trade agree- : nient received extensive news J coverage in Sydney. McGurgan said he became vice-president of Uni-Group Air, a subsidiary of UniGroup, but he was never made a director and he never received any money from Uni-Group. “I was given one or two shares, I am not sure which,” he said. Cosmetic Supplies Mr Brown. When you sold franchises to people did you believe that the company would supply cosmetics? McGurgan: I did. And future supplies? Yes, sir.

He said that because of a hold-up in production he had worked out a system of priorities for deliveries. All the distributors with more than one zone had been supplied and some of the others.

He said that up to June 17 when he was arrested he had no doubts about the business genuineness.

McGurgan said that when he arrived at the office that day he was told that a case containing the company’s papers had been found in the harbour and later he was shown a filing cabinet from which documents and records were missing.

“It was obvious there was something rotten,” he said. Mrs Kemp, one of the firm’s shorthand-typists, was also upset. He told her she might as well leave because that was his intention if he did not get an explanation soon. Both shorthand-typists were paid off. He said he had no knowledge of how the case had come to be in the harbour.

Cross-examined by Mr C. M. Nicholson, for the Crown, McGurgan said that in Australia he was paid on the basis of £lOO for each distributor he signed up, but had to meet all his expenses out of this. His gross earnings over three months were about £5OOO. The case will continue tomorrow.