ALLEGED THEFT OF £8740

Dominion, Volume 38, Issue 138, 8 March 1945, Page 5

ALLEGED THEFT OF £8740

Auctioneer And Clerk

Charged

Jointly charged with the theft, between January 8, 1937, and January 10, 1945, of £8740 from Townsend and Paul Ltd., two employees of the company ap-

peared before Mr. Stilwell, S.M., in the Magistrates’ Court, Wellington yesterday. Accused were Lionel Clifford Nimino, auctioneer, aged 35, and Clarence Haigh, clerk, age 48. Detective-Sergeant Compton conducted the case for the prosecution. Mr. F. W. Ongley appeared for Niinmo and Mr. W. E. Leicester for Haigh. George Samuel Thorpe Harden, accountant, who audited the books of Townsend and Paul, Ltd., described the method by which the company’s auction . sales were made. At the completion of each day's’ selliug the auction clerk balanced the total day’s auction with the unpaid bills. In the course of a routine examination of the firm's accounts Mr. Barnett, an auditor, reported to witness that there were discrepancies. By January 117, investigations made it apparent that the discrepancies were of seiious proportions. In an interview with Haigh, witness said, he asked how the practice started. Haigh replied that it began a long time ago. He and Nimnio were very dissatisfied with the remuneration the firm paid them and worked out the plan together. They shared the proceeds on a 50-50 basis. Asked what he had done with the money, Haigh said he put it in the bank. He had some interest in two stud mares, but this venture proved very costly to him. Haigh expressed great regret at what he had done and said he and Kimmo would have repaid the money if they ever got to the top. He had no excuse and the matter was ou his conscience so much it was preventing him from sleeping properly. Witness said he also interviewed Nimnio, who said how sorry he was about the whole business. It had been so easy to work between them and once started he

could not stop. In a later interview Haigh told witness that if the company proceeded against him he would forward a letter to the Internal Marketing Division and the Commissioner of Taxes listing breaches he had recorded allegedly committed by Townsend and Paul Ltd. He said he might get two years hard, but tin firm would be torn to shreds. Cross-examined by Mr. Leicester, witness admitted t' at the alleged defalcations arose out of sale by auction of fruit, vegetables and Howers out of an account known as the “Bell” account. “Bell” was a fictitious name and was really Townsend and Paul. Asked if goods knocked down to a named individual could go into the stock of the company under the name of “Bell” at a lower price, witness said: no, it would not affect the price returns- because account sales to growers were taken from the original auction bid. Accountant’s Evidence. Stanraore Harper Barnett, public accountant employed by Wilberfoss, Harden and Company, said he was instructed to examine auction sheets and stock accounts of Totvnsend am. Paul Ltd. and noticed discrepancies for which he was unable to account. For example, on January 10 a “Bell” bill showed a list o. stock amounting to £B/8/-, whereas the summary of the auction sheets indicated £lB/8/1. John Guy Oliver, audit clerk, employed by Wilberfoss, Harden and Company, said on instructions he prepared a master sheet showing the discrepancies between daily auction sheets and the summary of Townsend and Paul Ltd. The master sheet showed a total discrepancy of £8740 but since its compilation other bills discovered proved that this total had been underestimated by £lO. The hearing was adjourned at 4.30 p. till 2.15 p.m. on Monday when three more witnesses will be heard.