Seven counts against former secretary

Press, 15 September 1977, Page 2

Seven counts against former secretary

Greymouth reoorter

A former Greymouth borough councillor and company secretary’, John Phillip .Guerin, aged 42 now a motel [manager of Christchurch, •faced two charges of failing to account, two of forgery, two of acting upon forged documents as if they were genuine, and one of fraudulently applying part of money received to pay premiums on a policy of life insurance, when he appeared in the Magistrate’s Court at Greymouth yesterday. Guerin (Mr P. G. S. Penlington) has pleaded not guilty. The hearing was adjourned part-heard at the end of yesterday’s sitting, to today. Mr C. McGuire, of the Crown Law Office, who appeared for the police, told Mr N. L. Bradford, S.M., that it was alleged that between November 1, 1972, and February 12, 1975, at Greymouth, Guerin had received money totalling $2OlO with a direction that it be paid to various creditors of William Robert Goodwin and that he had fraudulently applied part of it to pay monthly premiums on a life-insurance policy in the name of Mr Goodwin with Aetna Life of Australia and New Zealand, Ltd.

It was alleged that Guerin had forged the policy, which :was for $ll,OOO, and that Mr Goodwin had not authorised it. At the same time, about November 29, 1972, Guerin had acted on the policy as if it was genuine. It was further alleged that on or about November 21, 1973, Guerin forged an Aetna life-insurance proposal, in the name of Alan Leslie Thomas, for $30,000. Material parts of the policy were purported to be made on behalf of Mr Thomas, who had not authorised it. On or about the- same day, Guerin had acted on the forged document as if it was genuine. It was also alleged that Guerin had received $735 from Mr Thomas, and $624 from Moncrief Stechman, to pay their

(respective creditors, and had; ■ fraudulently omitted to do so. | Mr Penlington opposed an 'amendment to the dates on I charges relating to the Thomas policies, from October 20 to November 21, saying that after four years he would have thought the prosecution would have its dates correct. Mr McGuire said that the original charge had been based on a photostat copy, and he had not seen the original document until Tuesday’ evening. The Magistrate allowed the amendments. Mr McGuire said the money had been received for creditors pools from people in debt, for summary instalments on their accounts. Guerin was in the position of supervisor of the instalment accounts. Kenneth McKenzie Yarrall, accountant with the Bank of New Zealand at Greymouth, said that an account in Mr Stechman’s name had been opened by Guerin as a summary instalment account, and he was to be the sole operator. The account was closed in February, 1975, Guerin drawing the remaining balance of $162. A letter countermanding Guerin’s authority had been

received from the court but in the interim the cheque had been honoured. Witness also gave details of Guerin’s opening accounts for Messrs Thomas and Goodwin with Guerin as the only signatory. Monthly insurance payments were made from the accounts. Raymond Stuart Gunn, manager of the Greymouth branch of the Westland Savings Bank, said a search warrant was undertaken this month on a bank account in the name of Guerin by Detective Sergeant J. C. Carter. He produced a lodgment form and details from ledger cards of credits to the account. To Mr Penlington, witness agreed that Guerin had been the secretary of several or-

ganisations, insurance com-

Hpanies, the Greymouth Trotting Club, and the Industries Fair Association. Guerin had sold his business and left Greymouth in May, 1975. From his own observations, Guerin’s business had be- ; come increasingly busy until . he sold out. Raymond Brian Newton, ■ administration manager for . Aetna Life at Auckland, said that in 1972 the procedure was that proposals received were initially handled with first premium before the proposals were forwarded to Sydney for underwriting i proposal. The only record • maintained in New Zealand : at that time was copies of . the cash sheets; and he . identified two deposits of cheques for the policies of Goodwin and Thomas. The latter was a personal , cheque. This was unusual, , and should normally have been referred back to the agent. Witness said that the Sydney office had been able to forward the original i Thomas proposal and at- , tached documentation. The . original premium of $77.50 had been accepted on November 21, 1973, for a policy of $30,000. The agent in drawing up the proposal had been Guerin.