ALLEGED FRAUD

Hokitika Guardian, 30 September 1929, Page 1

ALLEGED FRAUD

TEXAS CASE. AUCKLAND, Sept, 27.. Mr John, It. Bigliam, sheriff of Bell County, Texas, who is now in Auckland, stated that for the last eighteen months he had been concentrating on the arrest of A. B. Crouch, of the A. B. Crouch Grain Company, Temple, Texas, who had “put over” the greatest fraud that had ever been perpetrated in Bell County. “In grain business in our country,” he said, “it is customary when grain is shipped and the bills of lading are signed, that cash can be drawn against these at the banks, the waybills being the security documents. It is quite apparent that Crouch had been preparing for a big coup for some time, as he was able, by forged waybills, to fleece two banks in Temple for 160,000 collars. One of these banks was only a small'concern, and it lost 40,000 dollars, and the company in consequence had. to be reconstructed. The second Brink was a big concern, and the 120,000 dollors it lost was made good oy the stockholders.

The firm of A. B. Crouch and Co., did an enormous business in IIL'U County, and also operated in Oklahohie, Arkansas and other places. In faot, it operated ail over Texas. Within ten days of the forged documents going into the banks, the fraud was discovered, and a hue and cry was raised for Croucxi, who had disappeared, ,but his wife and family remained in the township. No trace was found of him for some time, but subsequently information drifted in to the effect that he had sailed for- Australia or New Zealand under an assumed name •of Campbell or Cameron,, and in 1918, an officer of the United States Police Department was sent to Australia and New Zealand, but failed to locate him. It is evident that after he got to Australia and New Zealand he returned to America to bring out liis family, who had, in the meantime taken up residence with relatives at Arkansas.

“The methods that I adopted to find out where Crouch was located was to send out letters every thirty days to merchants, the police and others in Australia and New Zealand, with a description of Crouch, and his photograph; ancl it is this method that has eventually brought me out to New Zealand. The banks were very anxious at all costs to have this fraud investigated, and up to the present time someth'ng like 20,000 dollars has been spent in the effort. The* crippled bank and me State Bankers’ Association have contributed to the cost. The penalty for forgery in Texas is a penitentiary sentence of from two to ten years.” Mr Bigliam stated that the sheriffs are elected in the United States, and he has held the position for the last five years. He hod known Crouch all his life. Referring to police methods in New Zealand, he said they were very mild compared to his country, where a man never went after a. criminal without one or two pistols in .liis possession.

The Texas Sheriff intimated that it was likely that me application for extradition would be contested by the accused man, Grey.