SYNDICATE-FRAUDS?.

Evening Post, Volume CXXXV, Issue 22, 27 January 1943, Page 4

SYNDICATE-FRAUDS?.

. ■qp ■ ,' ' ' i *- t_ BOLTON-MOSS CASE

GUILT ADMITTED /J ..

Five charges^ of frauduleiitly riu^ v appropriating money throughout New Zealand for' the pur- / pose of exploiting patent frights 'for the manufacture of luminous >p&ult were admitted in the;- ftfagistrfte's Court yesterday by Leonard Bowliy Bolton-Moss> company director, aged. 46, who was extradited recently' from Australia on Athree charges of theft while managing director of ■HamUtdn'i.* (Australia and New. Zealand), "Ltd. ; Those three informations were amended yesterday arid two more added, the amount involved being £1060.; A total of £9148 10s had been subscribed, $md £6938 19s 6d is owing to subscribers. Moss was committed to the Supreftit Court for sentence by Mr. J. L. Stout, S.M. The sums mentioned in the five charges were £50, £500, £250, £250, and £10, and the dates ranged from October 2, 1939, to June 26, 1941. Each charge said that the money was "to be applied as capital moneys of the Luminous Paint Syndicate and expended solely in payment for the New Zealand selling rights in respect oi certain fluorescent compounds and thi cost of and incidental to, certain in« vestigation in Australia." The prosecution was conducted by ! Mr. W. H. Cunningham. ■ • , Francis Henry Kember, public" a& countant and soldier, of Wellington, whose firm was auditor for Hamilton's, said Hamilton's was originally a pri> vate company, but was reregistered in 1937 as a public company. The company went into liquidation on Augus'l 6, 1941; the first liquidation was voluntary, and subsequently it was ordered to be wound up by the Court. At the | time of the voluntary liquidation the books showed that £9146 10s had been subscribed to the syndicate and that I £6938 19s 6d was owing to subscribers. IN DEBT TO COMPANY. In May, 1939, the last time the witness audited the books, the accused owed the company £2977 17s Bd. On September 1, 1939, the company had a bank overdraft of £175 4s 6d. George William Brown, official assignee at Christchurch, and official liquidator of Hamilton's (Australia and New Zealand), Ltd., said he had made a thorough investigation of the books and records of the company. They showed that £9146 10s had been subi scribed for a luminous paint syndicate. The first of the subscriptions came in on September 8, 1939, and the last was received in June, 1941. AIL subscriptions went into Hamilton's bank I account. When the first subscription was paid in the company had an over* draft of £174 18s, and in July. 194I 4 the account was,in credit 13s Bd. Certain subscribers received their money back, to a total of £995, but that sum was not included in the £9146 10s. Between September, 1939, and July, 1941, the only amount put into the company's account, apart from lumuv ous paint subscriptions, was 4s. There was no record of any directors' meetings after September, 1939. After that date the company did not carry on its ordinary business. The banH account, was always operated on by the accused, the cheques being countersigned by the secretary. I SPENDING OF MONEY. All the.money collected for the luminous paint syndicate—the £914fl 10s—was dispersed between September. 1939, and July, 1941. The accused hintself drew £3198 8s lOd. To pay th* ~ overhead of Hamilton's .£3739 17s was" ' used, and "expenses of syndicate" were*-"----£2207 10s 6'd, of which £790 lis 8d went to the accused for expenses. In iT the "overhead" the accused's salary -: was £750 a year, with an over-riding" " commission of 1J per cent, on all sharer -~> sold. A substantial part of the over-----head would be the accused's salary/* ■•"•"-*' lAt September 1, 1939, the accused -*■' iowed £3172 6s lid to the company: - : ' Mr. Cunningham: Is there anything"""1 * to show for all this money and the- -v syndicate members?— Nothing whatso--- - ever. •"«•>_-• No company was formed to exploit ■"- these luminous paints?— No. . :---_-