REMARKABLE FRAUDS.

Hawera Star, Volume XLVIII, 1 November 1924, Page 13

REMARKABLE FRAUDS.

REJUVENATING STAMPS. DISCOVERY IN VICTORIA. SYDNEY. Oct. 16. Some remarkable frauds have recently been attempted or accomplished in Australia. Following the seizure on the Randwick racecourse in Sydney last week of £3OOO worth of forged £2O notes comes a disclosure that the Victorian State revenue has been defrauded of many hundreds of pounds through some persons Whose identity has not been established chemically treating stamps of high denomination in order to erase the cancellation marks. At the beginning of the year an officer of the Titles Office noticed that a duty stamp for £SO attached to a document in connection with a transfer of land appeared to be “dead.” A closer examination of the stamp suggested that it had been chemically treated. The matter was immediately reported to a department of the Comptroller of Stamps, and in turn to the Auditor General. Inspectors of these officials tested the stamp scientifically and found that it had been previously used and its cancellation erased by the/aid of acids. At this stage the criminal investigation-branch was called in. A further search of the Titles Office disclosed that a great number of documents bore duty stamps of all denominations of £lO and upwards, but principally’ of £SO, all of which had been previously cancelled and “treated.” Most of these documents had been through a certain city solicitor’s office. Inquiries there elicited the information —freely offered—that they had all been pui chased in good faith Trom a stamp dealer at a discount. Detectives and the inspectors of the Auditor-General’s department called on the stamp dealer, who also admitted having sold the stamps. He denied having treated them in any way, and expressed surprise when told that they had all been previously cancelled. He had purchased them, he said, iri the ordinary course of his business. After an investigation extending over months, the officials were unable to trace the person from whom the dealer had purchased the stamps. Their reports were forwarded to the Crown Law authorities, who decided that no further action could be taken. Mr Norris, Auditor-General, in consequence of these irregularities and a similar affair last year, made a recommendation t to the Treasurer with a view to minimise the possibility of future losses. He suggested that, in connection with land transfer and similar documents, instead of duty stamps for £lO and upwards being available at licensed dealers, those having occasion to use such stamps should send cheques covering the amounts to the Titles Office with the documents, and these should be franked by embossing or. perforating. The system that has actually been adopted since the discovery of the latest fraud is to perforate every duty stamp on documents immediately they are lodged at the Titles Office. Last year a less extensive fraud on similar lines was discovered. Dutv stamps of gmall denominations, principally of ss, previously cancelled and with th e cancellations erased, were detected.