WINNER OF £3000

Dominion, Volume 25, Issue 266, 5 August 1932, Page 12

WINNER OF £3000

Bankruptcy Offences EXTRAVAGANT LIVING Guilty on Three Counts REMAND FOR SENTENCE Although winner of a £3OOO art union prize in the latter part of 1030, John Moug, mercer, of Wellington, found that “through gambling and unjustifiable extravagance in living,” he was reduced to a state of bankruptcy in January of the .present year. The sequel was heard in the Supreme Court yesterday afternoon, when Moug stood his trial before judge and jury, on three. charges laid under the Bankruptcy Act.

They were: (1) That with intent to defraud his creditors he concealed or removed £5OO within two months before the date of an unsatisfied judgment for £232/15/6 obtained against him on September 24 by Thelma Stone. (2) That on January 29, 1932, having been adjudged a bankrupt, he did bygambling or unjustifiable extravagance in living, bring about his bankruptcy; and (3) that having been adjudged a bankrupt he did, within three years before the commencement of the bankruptcy, make payments out of the regular course of his business, not being for the ordinary expenses of himself and family. Moug, who was not represented by counsel, pleaded not guilty. Without retiring, the jury returned a verdict of guilty on all three counts, and accused was remanded for sentence. The Crown Prosecutor said that th® present prosecution was a somewhat unusual one, and was laid under tha provisions of the New Zealand Bankruptcy Act, 1908. ' The Act was framed by the Legislature for the protection of creditors from certain offences committed by men who went bankrupt. There wak no crime in anyone going bankrupt. The crime lay in a man doing certain acts prior to and leading up to his bankruptcy, which were deemed by the law to be fraud upon his creditors or something tantamount to fraud, by cheating them out of their just rights, or if he had brought about his bankruptcy by Improper conduct. Early in 1931, Moug, with 1 a Mr. and Mrs. Clifford Baxter, agreed to purchase a place known as the Dominion Club, the Crown Prosecutor continued. This contained a certain amount of valuable furniture, and the purchase price was £llOO. It was purchased from Mrs. Thelma Stone. On September 9, 1931, two instalments amounting to £312/12/- had not been paid. .At that time Moug had £2OOO in the Union Bank of Australia, Ltd., on fixed deposit. Nine days later proceedings were taken to attach portion of this £2OOO to satisfy judgments for £312/12/which had been made against him. At this time, Moug wrote a letter to the bank, and the bank released th® money from fixed deposit. The money was disposed of as follows: —£312/12/was paid in respect of two £282/17/5 was paid to the bank in respect of overdraft granted, £B5O was appropriated under a trust deed for Moug’s wife and child, and the balanc® of little more than £5OO was paid to Moug on September 21. On September 9, the Crown Prosecutor added, there was a further instalment of £232/15/6 owing. That wai not paid when the fixed deposit was released some days later, and on September 24, Moug had nothing left. Samuel L.'Tansley, Official Assignee at Wellington, said that Moug was adjudicated a bankrupt on January 29, 1932, and subsequently supplied a statement of affairs. Liabilities were set down at £269/4/6, and assets nil. Later the liabilities were increased to £B5O. Witness read a statement made by bankrupt at the creditors’ meeting. Evidence by other witnesses for the Crown was given on similar lines to the lower court hearing. When asked if he wished to give evidence, Moug said that he only desired to make a statement from the dock. He said that in October, 1930, he won £3OOO in an art union. In December he was introduced into a club known as the Dominion Club. In March following he was induced to buy the club for £llOO in company with a Mr. Baxter, who was supposed to take a half share. A deposit of £5O was paid. The concern did not go too well, and he had to buy Baxter out and get a manager in. The club still did not pay, and he eventually gave it up. “Th® club was a gambling club, and I hav® done all my money in,” Moug said. In a short summing up, his Honour said that qn September 21, 1931, accused received £5OO in cash from hi® solicitors, and on September 23 he raised £9O on his motor-car. On the following day, according to his own statement, all this money was gambled away.

The jury then returned a verdict of guilty on all counts without retiring, and Moug was remanded for sentence.