AMAZING SWINDLE

Greymouth Evening Star, 15 September 1926, Page 8

AMAZING SWINDLE

GERMAN’S GREAT HOAX. What was described as an amazing financial swindle was engaging public attention in Berlin recently. It was of the nature of a “duper-Koep-enickiad.” In Lt no fewer than z2 of the most prominent industrial concerns of the country were concerned. The Daily Chronicle correspondent told the story as follows:—The hero of this almost unbelievable tale is Herr Iwan Kutisker, who a few ways ago was sentenced to five year’s’ penal

servitude and to a heavy line lor a swindle whereby the Prussian State Bank lost nearly 14,500,000 marks. The Judge described Kutisker as a person of greater duplicity than any swindler known in Western Europe for a century and a half.” At the time when his name was before the public in connection with the case, and when his dark deeds were coming to light., Kutisker actually had the nerve to set up a concern which he called “Sales Organisation for German Industry, Limited.” Its object was represented to be to assist German firms/in doing business with Russia. Kutisker set up a “man of straw" as head of this firm, and entered in.'to negotiations with 60 or 70 industrial concerns throughout the country. With 22 of them he entered into agreements for the supply of enormous quantities of goods for Russia. Kutisker for a while kept lit;; name secret, alleging that he occupied such a high position that such concealment was necessary. Agreements with Kutisker concluded were for periods of five years, ami he charged commissions, varying from 3 to 5 per cent., not merely on the total amounts, but also on business which any of these firms might do independently of his firm. These charges he justified on the ground that it was necessary to bribe Heavily certain members of,a Soviet commercial delegation, in Berlin, and also some prominent Bolshevist authorities in Moscow. He managed to obtain a considerable portion of these commissions ; and also he persuaded various firms to give him full particulars of their business doings. Inis information he utilised in order to make highly lucrative coups on the Stock Exchange. One day, however, a representative of a certain firm, called on Kutisker —who was then still preserving his incognito. In the course of their talk a clerk entered the room and said, “'Herr Kutisker, you are wanted on the telephone.” So the secret was out. The visitor was naturally astounded that he had to deal with such a notorious person, and boldly said that the whole business Was a fraud. Kutisker endeavoured to put a bold face on the situation, and produced agreements as signed by many of the foremost German firms. This visitor knew, howeyer. that one of these firms was doing its Russmn business on its own account, so he went to 1 'Soviet Commercial Delegation to make inquiries. There he learned that the delegation knew absolutely nothing of the whole affair, and that it must, therefore,. be. a 'Swindle.; The Soviet delegation then issued a statement revealing the. full nature of the fraud, and proving that the delegation has had nothing whatever tc do with Kui inker. If. in not known what sums aye 'actually involved m this affair, hut the newspapers state that they must run ..into millions of

marks. H is declared that the State Attorney will take the matter up, and Kutisker will be charged with fraud against more than a score of •firms.