Jury acquits two forex dealers

Press, 7 April 1987, Page 4

Jury acquits two forex dealers

PA Wellington Two former foreign exchange dealers charged with false accounting were acquitted by a jury in the High Court at Wellington. The jury also acquitted a third former dealer, Bruce Lindsay Pemberton, aged 33, a hunter, on all but one charge of false accounting. On the remaining charge, the jury was not able to reach a verdict. Pemberton had denied 20 charges. lan Richard Morris, aged 25, unemployed, had denied five charges of false accounting, and was acquitted — as was a third accused whose name was suppressed.

The third man had denied a joint charge of false accounting. The two were discharged by Mr Justice McGechan. His Honour remanded Pemberton in custody for a date to be fixed, and said he would hear a bail application in chambers. He said there would be an order for a new trial on the remaining charge. Earlier, Crown counsel, Mr Kenneth Stone, said the three were employed by Broadbank Corporation, Ltd, in Wellington. They were all concerned in one way or another with foreign exchange dealing on behalf of Broadbank.

Mr Justice McGechan on Tuesday made orders under section 34 (3) of the Crimes Act discharging Pemberton on five of the charges and discharg-

ing Morris on one. The jury began deliberations at noon on Wednesday.

During a 2>4 hour summing up, Mr Justice McGechan said the Crown had said the accused used deal slips relating to fictitious transactions to cover up the fact they were over their limits on trading in foreign exchange. By covering up they hoped to avoid disciplinary action and Reserve Bank trouble. The Crown said that the deal slips were entered recording transactions and soon after were reversed by another deal slip, bringing the matter back to square one. Defence counsel strongly contested Crown submissions that the deal slips were false or that there was an intention to defraud.

Mr Bruce Davidson, for Pemberton, had said the dealers’ limits were flexible and the records produced were insufficient for a reliable picture.

Mr Justice McGechan said it had been submitted that at the end of the day “the most you get is suspicion and suspicion is not enough.” l