GAMBLING & TWO UP

Gisborne Times, Volume LX, Issue 9779, 12 April 1924, Page 7

GAMBLING & TWO UP

CLERK EMBEZZLES EMPLOYER’S MONEY. OVER £SOO INVOLVED. An ingenious system of embezzlement of bis employer’s money was discovered by the arrest of Frederick John McDonald, aged 24 and a clerk by occupation. During the eighteen months McDonald lias been doing l clerking work in the office of Mr. F. j Goodman, lie has obtained a considerable sum through falsifying wages and timebooks, and by cashing cheques to be used for paying ao j counts. This money, according to a 1 frank admission to the police, he had dissipated in gambling, betting, horse-racing and the well-known colonial game of “two-up.” That his method of obtaining the money showed cleverness and shrewdness was indicated by the evidence and to obviate the chances of detection he even went so far as to forge receipts. One of life best exploits was to retain the money from a £25 cheque which Mr. Goodman had made out for Christmas boxes for liis men. He came before Mr. E. C. Levvey, S.M.. in the Police Court yesterday charged as follows: That on February 22, 1923, ho did steal the sum of £3O; March 8, 1923, £10; May 24, 1923, £ls; May, 31, 1923, £25; June 21, 1923, £10; September 23, 1923, £SO; November 20, 1923, £33 12s Id; December 11, 1923, £5 4s 9d; December 20, 1923, £25; January 19, 1924, £4 4s; January. 19, 1924, £lo' 10s ; January 22, 1924, £ll 19s; February 16, 1924, £6 16s; February 16, 1924, £7 7s 3d ; i February 20, 1924, £5 8s 9d; a total of £2BO Is lOd; all the sums being ! the property of Frederick Goodman, j “SYSTEMATIC THIEVING.” j Detective McLeod said that Mo- j Donald - had agreed to have all the charges heard together. For the,! past 18 months he had been employed ! as a clerk by Mr. Goodman. Since | December last year he commenced ! systematic thieving from life employ- j cr by making errors in his time-sheets j and his account hooks, and by falsify- j ing additions and adding further j sums to oliequcs, which when cashed ; he appropriated. Mr. Goodman had [ given him cheques to pay accounts but instead of cashing them at the j bank, ho obtained money at various businesses. McDonald had given tha police every assistance since the investigation had been commenced. The modus operandi of McDonald was described by Albert Edward Bourgeois, accountant. He said that ho was instructed last January to make an examination of the books and accounts by Mr. Goodman. He discovered certain defalcations, and McDonald was called in while he went through the time-books and accounts kept by him. In these, there were defalcations amounting to £540. The operations commenced in December, 1922. and were continued until February 20 this year. The principal system adopted by accused was manipulation of the books by the use of duplicate and triplicate wages books by err.ors in the additions and the usci of fictitious 1 names and accounts. There was an amount of £3O in February, 1923, shown as a payment to Mr. Crombie, hut McDonald had admitted appropriating the money. In reference to the discrepancy of £lO in March, the correct amount of the wages account was £l5B 9s 4d, hut this had been altered to £I6S 9s 4d and as in other cases cheques had been drawn covering the extra amtount. AVitness mentioned that accused’s wages had in one instance been altered from £3 17s to £l3 17s. On September 17, McDonald had made up two fictitious amounts _ for telephone and cartage totalling £2O, which was included in wages. Another cheque for £25 made out by Mr. Goodman for Christmas boxes for his employees had not been paid to the men. ' In these cases accused had admitted cashing the cheques and retaining the money. Frederick 11. Goodman, contractor, said that- McDonald acted as clerk in his office for over IS months at _ a weekly wage of £3 17s. His duties were to keep the timebook, make up wages accounts, and pay local accounts. Each week accused submitted a statement of money required for wages and witness accordingly made out a cheque for the amount, The cashing and paying of the men was left: to McDonald. AVitness then proceeded to deal with cheques which lie had given accused to pay accounts but which lie had not done. In January last ho and Mr. Bourgeois went through McDonald’s accounts and found deficiencies approximating £540 for the eighteen month's accused had been employed. Evidence was given by Albert Francis Salmon, clerk, of the Gisborne Sheopfarmers’ Coy., Ltd., Fred. Collin, butcher. Thomas Adams, bookseller, and 'Charles Brown, salesman for Charlie Adair, that the cheques issued by Mr. Goodman in payment of his accounts had not been received from McDonald, but that Air. Goodman had paid them SubsequentTestimony regarding the cashing of other cheques was given ,by Edwin Gibbs, licensee of the Masonic Hotel ; Raymond Sweet and James G. Crooks, 'tellers in the National Bank of New Zealand.

GAMBLING AND HORSE-RACING. Detective McLeod stated that ho arrested 1 McDonald on March 26, on warrant in connection with the theft of £SO from Air. Goodman. He informed accused at the time that there would be further charges involving about £SOO and McDonald replied': “That is correct.” AYitness, continuing said: “I said wliat have you been' doing with the money P” AlcDonald: “I lost it all gambling, betting, playing ‘two-up’ and horse-rac-ing?’'’ Asked how he manipulated' the books, accused said it was done chiefly in the additions of the wages book. Ho used to add the respective amounts' with which he was now charged to the total of the accounts. When the cheques were drawn, lie retained the extra money. Regarding the nine cheques produced, McDonald had received them from Air. Good-‘ man, cashed them and retained the money. In reply to further questioning, accused said he had subsequently intercepted the accounts rendered 1 and destroyed them and in some instances had 1 forged signatures to timesheets and receipts. Ho intimated his intention to plead guilty to all the charges. ' AlcDonald pleaded guilty to the seventeen counts, but made no statement., and was committed to the next session of the Supreme Court at Auckland for sentence. FORGED RECEIPTS. FURTHER CHARGES. AIcDONALD COMMITTED FOR SENTENCE. The forgery of receipts for accounts which Air. Goodman had issued cheques was the basis of three further charges > against AlcDonald. Hei was charged with forging the name of J. H. Jones to a receipt for £l2 4s; the name of O. Skelton to the timesheet for £4 16s; and the name of J H. Jones to a receipt for £23 18s. AYhen Detective AlcLeod intimated his intention of taking the charges together, the Magistrate pointed out tha ho ran a risk of them being upset. He therefore decided to deal with them separately, . James H. James stated that, on December 20 last, lie rendered an account to Mr. Goodman for £l3 18s, and produced a duplicate document. The original account had been altered To £23 18s. He received payment for £l3 18s, but did not sign a receipt for the larger amount. Regarding thei receipt for £l2 14s, lie said that it was . not signed bv .him nor .had he authorised' anyone else to attach his | signature.

Charles Skalfcon. employed by Mr. Goodman, sai, u . • s not signed a time-sheet - Edwar d Evidence given by Alb hifi exam _ Bourgeois snowed! that m _j, + u n + ation of the books ho fou*. t k 6en figures on Skelton’s account ha altered to the extent of £lO, . at£C>) had been included in the wv a book.

Detective McLeod testified that, when charged, accused admitted his guilt and stated that he would plead guilty. . On pleading guilty to the three offences. McDonald was committed to the Supreme Court at Auckland for sentence.