Jury Trial Elected On Charges Involving $40,000 Cheque

Press, Volume CX, Issue 32336, 30 June 1970, Page 11

Jury Trial Elected On Charges Involving $40,000 Cheque

Evidence that they had not authorised John Wilson Richards to advance a loan of $40,000 from Australasian Secured Deposits, Ltd, to the sharebroking account of Byrne and Company, was given by two witnesses in the Magistrate’s Court yesterday, when depositions were taken in respect of 10 charges against Richards associated with the transaction.

Richards, aged 30, a driver, and former authorised clerk employed by Byrne and Company, a Christchurch firm of accountants and sharebrokers, elected trial by jury before Mr K. H. J. Headifen, S.M., on two charges Involving false pretences, four charges of making false entries in accounting records, and charges of omitting to make an entry, drawing a dociunent without lawful authority, stealing a cheque,' and forging a cash-book entry. Richards was represented by Mr A. D. Holland, with him Mr A. P. C. Tipping. Mr R. L. Kerr appeared for the Crown.

I That on or about April 30, being a director of Australlasian Secured Deposits. Ltd, with intent to defraud, he made a false entry in a cash book belonging to the company by writing the words and figures, “Byrne and Company stock $40,000.”

That between Aprj| 30 and June 1, acting in the capacity of a clerk of Australasian Secured Deposits, Ltd, with intent to defraud, he made a false entry in a book belonging to his employer, namely by writing on a cheque butt, “30/4/70 Byrne and Company, Purchases of N.Z. local authority stock to be made for 852,000 approx, uplift 12,000 from A.P.A. discount to cover balance $40,000.” That on or about April 30 acting in the capacity of a clerk of Australasian Secured Deposits, Ltd, with intent to defraud, he made a false entry in a book belonging to his employer the said Australasian Secured Deposits, Ltd, namely by writing on a page of the cash book the words and figures “Byrne and Co. stock 840,000.”

The hearing will continue today. Details Of Charges

Details of the charges which the defendant faces are as follows:

That on or about April 30, 1970, with intent to defraud Australasian Secured Deposits, Ltd, by means of a fake pretence, namely by falsely representing that authority had been given by Patrick John Byrne to advance a loan of $40,000 from Australasian Secured Deposits, Ltd. to the sharebroking account of Byrne and Company, he induced Jack Henry Blackmore to write his name on a document, namely an Australasian Secured Deposits, Ltd. cheque made payable to Byrne and Company for $40,000 and dated April 30 in order that the cheque might afterwards be dealt with as a valuable security. That on or about April 30, in incurring a liability with Australasian Secured Deposits, Ltd, he obtained credit by means of a false pretence, namely by falsely representing that authority had been obtained from Patrick John Byrne to advance a loan of 840,000 from Australasian Secured Deposits, Ltd, to the sharebroking account of' Byrne and Company. That between April 30 and June 1, being a director of Australasian Secured Deposits, Ltd, with intent to defraud, he made a false entry in a book belonging to the company by writing on a cheque butt the words and figures “30/4/70 Byrne and Company purchases of N.Z. local authority stock to be made for 552,000 approx, uplift 12,000 from A.P.A. discount to cover balance 840,000.”

That on or about April 30, acting in the capacity of a clerk of Byrne and Company, sharebrokers, with intent to defraud, he omitted to record a material particular in the cashbook of Byrne and Company, namely by omitting to show a credit of $40,000 to Australasian Secured Deposits, Ltd.

That on April 30, without colour of lawful authority, he drew a document, namely a Bank of New Zealand cheque on the account of Australasian Secured Deposits, Ltd, made payable to Byrne and Company, and signed J. H. Blackmore and J. W. Richards for the sum of 840,000. That on or about April 30, being a servant in the employ of Australasian Secured Deposits, Ltd. he stole a Bank of New Zealand cheque drawn on the account of Australasian Secured Deposits, Ltd, made payable to Byrne and Company, for the sum of 840,000 and signed J. H. Blackmore and J. W. Richards.

That on or about April 30, he forged a cash book, the property of Australasian Secured Deposits, Ltd, by inserting the words and figures, “Byrne and Co. stock $40,000.” On the application of Mr Kerr, a charge of theft as a

servant of Australasian Secured Deposits, Ltd, of a cheque payable to Byrne and Company for $40,000 on or about April 30 was withdrawn. Objection By Counsel Before the defendant made his election on the charge of omitting to show a credit of $40,000 to Australasian Secured Deposits, Ltd, in a cash book with intent to defraud while acting as a clerk of Byrne and Company, sharebrokers, on or about April 30, Mr Holland submitted the information was defective and should be dismissed.

Mr Holland said the defendant was embarrassed at that stage of the proceedings because he did not know who the Crown alleged he intended to defraud. He said his objection applied to three other informations.

cured Deposits to Byrne and (Company, “This just never happened,” he said. Asked by Mr Holland under cross-examination if Richards was in partnership with him, the witness said they shared the profits. “I regarded him as a son-in-law.”

Mr Holland: Did you regard him as your partner? The witness: I am not quite sure.

The witness said that by a deed of sale signed about May, 1969, he and his wife sold the business to his daughter and Richards for $50,000. “My wife and I were to be paid interest on this money.” Loan “Not Considered”

He said the four informations were defective because they did not fully and fairly inform the defendant of the substance of the charges. He asked that the Crown be directed to give details of whom the defendant was alleged to have intended to defraud. He did not know who the person was and if the Crown did not know there was insufficient evidence to substantiate an information and it should be dismissed. Mr Kerr submitted that naming of the person or persons was not an integral part of the section under which the information was laid. It was necessary only to prove the intent to defraud. In upholding the Crown submissions, the Magistrate said that in his view the defendant had been fully and fairly informed of the offences by the words in the informations. First Witness Patrick John Byrne, the first of 13 witnesses to be called by the Crown, said in evidence that he was a suspended chartered accountant and sharebroker.

Mrs Betty Helen Byrne said Australasian Secured Deposits, Ltd, was not a Govern-ment-approved short-term money market. It went into liquidation on June 8.

She said she was a director of the company. She said a loan of $40,000 from the company to Byrne and Company had never been considered. She first knew of the cheque for this amount being drawn when it was brought to her attention sometime later.

Cross-examined by Mr Holland, the witness said that if the cheque was not a loan but was for the purchase of Government stock it would be paid to Byrne and Company. Anthony William NorbertMunns said he was employed by Chamberlain, McKie and French, sharebrokers, of Christchurch. He was under instructions from the inspector of the Christchurch Stock Exchange (Mr J. L. Kerr) to assist with matters involving Byrne and Company. He said that in mid-June, 1969, he was employed as a stock exchange operator by Byrne and Company. He received his instructions for the buying and selling of shares from Richards.

He said he began working for Byrne and Company in 1940. He obtained a seat on the Christchurch Stock Exchange in 1942 and qualified as a public accountant in 1944. Since then he had practised as a chartered accountant and sharebroker under the name of Byrne and Company.

In April, 1969, Mr Kerr conducted an inspection of the shareholding records of Byrne and Company. During a discussion in the office on May 29, Richards said he hoped the staff would stand by Mr Byrne to help him out of his problems and that he would co-operate to the best of his ability.

He said he first met the defendant when he began working in his office about 1961. The defendant later married his daughter Julie.

“He said that he was very sorry about the problems that had arisen. He said that over the week-end he would be working with us, giving us details of journal entries, bank statements and ledger cards.

“He said to me that he was fully responsible for all the problems that had arisen.”

The defendant was employed as an accounting clerk, but did not progress very well in that particular field. After some discussion he tried the sharebroking side of the business and showed exceptional aptitude. He performed his duties very well and attended the Christchurch Stock Exchange as an authorised clerk. The witness said that as time passed he handled less and less of the firm’s sharebroking business and the defendant handled more and more. It was a gradual process.

“As he seemed to be doing) so well I was happy to leave i it to my son-in-law.” He said the defendant made an unsuccessful bid for a seat on the stock exchange; about three years ago. | Sale Of Business ! The witness said he was secretary of a number of racing and trotting clubs and evening meetings. “I was phasing myself out and Richards attended some of the meetings on my behalf, and he was appointed assistant secretary of a number of them.” He said his health had not been very good, and in 1969 discussions -were held between himself and his wife and Richards and his wife concerning the sale of the practice and his shares in Australasian Secured Deposits, Ltd. A document of sale was drawn up which related to the business of Byrne and Company which included accounting, secretarial and sharebroking. Referring to Australasian ; Secured Deposits, Ltd, the I witness said the company was formed as a short-term invest|ment company to follow the l practice of o:her short-term I money markets. Money was accepted on deposit at 24-hour or seven-day calls. It was a temporary investment similar to a Post Office Savings Bank deposit. Deposits were to be invested in Government or local body stock. He said that if the interest rate received was 5 per cent the investor would be paid 34 per cent or 4 per cent. The margin was the profit i earned by the company. Capital Increase

The capital of the company on incorporation was £20,000. made up of £1 shares paid up to 2s 6d each. He said he held the majority of the shares and his wife and Richards held the rest.

The capital was increased in October, 1963, by 4000 £1 fully-paid preference shares allotted to a Miss H. I. Thompson. The secretary, Stuart Mackay, resigned in April, 1965, and his daughter became secretary and a shareholder.

He said he formed the company for the benefit of his family and never wanted or had any benefit from it. From the end of April, 1969, his daughter, Richards and Mr Blackmore managed the affairs of the company. The witness said he had never discussed an advance of $40,000 by Australasian Se-