Bail set at $l0,000

Press, 29 November 1978, Page 5

Bail set at $l0,000

A check-out doorman and former horse owner-trainer, who allegedly obtained $40,000 worth of bridging finance to pay a $20,000 debt, and borrowed $14,000 to buy a hotel, was yesterday committed to the Su-I preme Court for trial. 'e t 'ichael Hogan. aged 38, denied two charges of obtaining a document which could be used for pecuniary advantage, and pleaded not gudty to a further charge of using a document for his pecuniary advantage. After the taking of depositions. Mr H. W. Dear and Mr J. D. Diggs. Justices of the Peace, ruled that there was a case to answer. They remanded Hogan on $lO,OOO bai’ <o February 12 Sereant M. P Caldwell prosecuted and Mr L. M. O'Reilly appeared for the defence. Opening the prosecution’s case Sergeant Caldwell said that Hogan had signed an agreement to buy a $35,000 house n Christchurch in October 1973. He went to his lawyer. War-en Spencer Smith, to ©brain $20,000 worth of bridging finance until his loan from Colonial Mutual Life Assurance Society. Ltd, came through. He was to pay the balance from his own funds. Hogan arranged bridging finance from the Bank of New Zealand and the Bank of New South Wales, through his solicitor. He banked one loan of $20,000 in bis personal savings account and withdrew $15,085 to pay his solicitor’s firm. He paid the other $20,000 to the same firm.

The defendant later borrowed a total of $14,200 from a friend to finance a hotel buying deal, which fell! through. He was declared bankrupt with a deficit of $61,000 earlier this year. In evidence, Mr Smith, the defendant’s lawyer, said that, he had not known that Hogan had drawn the $20,000 from the Bank of) New South Wales until the’ bank sought repayment. He had omitted to cancel the first undertaking. Detective C. T. Dalzell! told the Court he had interviewed Hogan in Auckland on November 17, 1978. The] defendant had said that he’ did not know where the extra $20,000 had come from and the outstanding amount owed to Mr Spring was a personal loan. In his statement Hogan! said that after he bought the house he planned to raise at I least $lO,OOO from the sale of a horse. His lawyer, Mr Smith, who also had shares in the horse did not want to sell and instead took tbe horse to race in the North, Island. Mr Smith had known his’ intentions all the time, he said. The Bank of New Zealand declined bridging finance, but he obtained $20,000 from the Bank of New South Wales. He banked the money in the. Canterbury Savings Bank, then paid $15,085 to Mr Smith’s firm and cleared other outstanding debts. At no time was the money borrowed from the friend intended for buying a hotel. Counsel reserved submissions for the defence.