BANK-NOTE FRAUD

Dominion, Volume 24, Issue 77, 24 December 1930, Page 11

BANK-NOTE FRAUD

“Dramatic, Elaborate” PRINTERS LOSE CASE London Firm’s Liability COURT AWARDS £531,851 By Telegraph—Press Association—Copyright. London, December 22. In awarding the Bank of Portugal £531,851 with costs in the bank swindle case, Air. Justice Wright emphasised that Marang’s dramatic, elaborate fraud was unparalleled in the history of commercial life.

His handsomeness, prepossessing manners, and credentials ' thoroughly impressed Sir William Waterlow. Marang’s extraordinary ingenuity and resource was shown in the interception of letters to the bank enabling the production of a reply practically forbidding direct communication with the Government, and almost handing over the bank body and soul to Marang, thereby indicating the bank’s confidence.

Letter Not Received.

His Honour said that he accepted the fact that Sir William wrote regarding the receipt of authorisation, but the letter was not received by the bank, otherwise it would . have prevented proceedings.

It was no reflection on a great company. They were the victims of an ingenious trap, but the directors fell short of the standard of care banknote printing required.

If the bank’s plates were used without authority, the printers must bear the consequences. He pointed out that the bank had realised nearly half a million from the assets of the conspirators. The case lasted twenty-one days, and cost £50,000, of which £20,000 went in counsels’ fees. t .

As a sequel to Portuguese bank note frauds in 1925, the Bank of Portugal sued Waterlow and Sons, London, printers, in the King’s Bench, claiming £1,115,000. The bank’s counsel said that a Dutchman named Marang, who later was discovered to be a member of a gang of international forgers, went to Waterlows with a letter of introduction from a Dutch firm, and saw Sir William Water-

low, cx-Lord Mayor of London, who was then chairman of the firm. He told a story which, the bank submitted, was incredible. It revealed a plot so full of leaks and holes that it was amazing to find that it was successful. Marang said that a group of financiers had decided to assist the Portuguese colony of Angola,, which was financially embarrassed. Documents Produced. He produced documents, which turned out to be forgeries, authorising a Dutchman named Reis, on behalf of the'syndicate, to print notes to the'face value of £2.000,000, and also the Bank, of Portugal’s authority for these. Specimen notes were attached. The documents showed portraits of the poet Devos. Waterlows pointed out that another firm had printed the specimen notes, but Marang said that the Vasco de Gama notes, which Waterlows printed for the bank, would be acceptable. Marang impressed upon Waterlows the need for secrecy, and all correspondence with the Bank of Portugal, except one letter, passed through the hands of Marang, who, with his associates’ forged replies. Meanwhile Waterlow’s agent in Lisbon warned the London house that the Bank of Portugal had not authorised the issue of colonial ■ notes, and also that many rumours were current, regarding which it was unsafe to write, but Waterlows ignored the warning, and delivered the notes, after which Marang ordered a further £7500. Issue Was Withdrawn. \ All the notes were printed in series, and were identical with the authorised issue, resulting in the bank being unable to distinguish them. Not all of the £580,000 notes printed were circulated, but the bank paid Marang’s notes to .the value of £1,700,000. Eventually they werq, forced to withdraw the whole of the Vasco de ,Gama issue. Counsel added that Reis and another were sentenced at Lisbon to twerity-five years' transportation. Marang had been sentenced to two years’ imprisonment at The Hague, but in the meantime had disappeared.