BANK MANAGER’S THEFT

Greymouth Evening Star, 4 December 1926, Page 7

BANK MANAGER’S THEFT

COAST TIMBER RIGHTS BOUGHT (Per Press Association.) NEW PLYMOUTH, December 3. The ai-rest of a bank manager at Stratford last year on charges of embezzling, and his bankruptcy subsequent to his imprisonment were responsible for involved litigation before the Chief Justice in the Supreme Court. The Deputy Official assignee asked that a deed of arrangement between William Kerr (now undergoing sentence) and the Union Bank of Australia and others should be set aside as void under the Bankruptcy •. After lengthy argument decision was reserved.

Briefly the position was that early in July 1925, it was discovered that Kerr, then manager of a Bank at Stratford had been embezzling the Bank’s funds, and using them to acquire valuable timber rights on the West Coast of the South Island. J. 11. Robson and T. A. Sullivan had an option over these rights and R. R. Binnie was induced by Kerr to lend £lOOO to enable a purchase to be made. Some of the Bank’s money was used for the same purpose. On the' discovery of the in’egularities, a deed of arrangement was executed on July 9, at the instance of the Bank between the Bank, Robinson, Sullivan, Binnie and Kerr. Under the deed it was, provided that the timber rights should be ffahsfeiTed to the Bank, which was empowered to sell them on any terms it thought fit, and to apply the proceeds (1) in payment of the costs incurred by the Bank over the trouble ; (2) in payment of the moneys stolen (including other moneys' tiian those used for the purchase of the timber rights), together with interest ; (3) a payment to 10 per cent. ; (4) in payment of £lOOO to Robson; (5) in payment of out of pocket expenses to Sullivan ; (6) and any surplus be divided between Robson and Binnie.

Shortly afterwards Kerr was arrested on various charges of theft, and was adjudicated bankrupt, and as a result, the Deputy Official Assignee now attacked the deed, and asked that it be set aside as being in fraud of Kerr’s creditors.