FALSE PRETENCES

Hawera & Normanby Star, Volume XLI, Issue XLI, 12 August 1921, Page 5

FALSE PRETENCES

CHARGE AGAINST MANAGING DIRECTOR.

ACCUSED FOUND GUILTY.

(BY TELEGRAPH —PRESS ASSOCIATION.) AUCKLAND, Aug. 11. At tne Supreme Court to-day, the third day of the trial, Alfred Oscar Otto, managing director of the National Co-operative Realty Co., was found guilty of obtaining £400' from James Mackay Linklater by means of a false pretence. The Crown case was that accused misrepresented the financial position of the company to Linklater, and thereby induced him to take shares in the company. Accused represented the turnover at over £10,000, the assets at between £3000 and £5000, and the liabilities at about £100. When Linklater's solicitor asked for the books he was told they were not written up; the firm was too busy making money, and the balance-sheet was not made out. The solicitor advised agailfet investment, but Linklater invested and was engaged also as a salesman. Shortly afterwards Linklater discovered m the office a statement signed by accused showing liabilities of £2186 and assets £200 less. Immediately he joined the office Linklater was asked for a loan of £200 on the ground of the financial stringency and to keep the company afloat. In March "a distress warrant for £141 was issued against the company, Linklater paying the amount and taking a bill of sale on the company's furniture; In addi- : tion he advanced £113 to pay rent: a typist and legal expenses. 1 The defence was that accused honestly believed what "he represented, and that the statement in question did not show assets but only liabilities. A public accountant gave evidence that a comparative statement of affairs for the same period showed that the company was at that time in a fairly substantial position, the assets exceeding the liabilities by £5452, leaving out j the fully paid uj) capital of £5755, I which was a liability, but was balanced i by the goodwill of a similar amount, j He admitted it was a purely paper balance-sheet, but it was drawn up • from the company's books. The jury recommended, accused to ■ mercy on account of his wife and seven children. Sentence was deferred.';