EXTENSIVE FRAUDS ALLEGED

Hokitika Guardian, 2 May 1931, Page 3

EXTENSIVE FRAUDS ALLEGED

SOLICITORS AND MEDICAL AGENTS. SYDNEY, April 17. Three cases now before Sydney Courts involving fraud charges, conspiracy counts and bankruptcy proceedings deal with the disposal ot thousands of pounds. The fraud charges are those against Leila Beryl Smith (37), bw clerk, who is charged with having during the last five years conspired with William Carnegie Clegg, solicitor, to defraud Harry Wilson and others of large sums of money. Clegg is also under arrest, ..though at the time he is in a serious condition in a private hospital in the suburbs. A constable is at his bedside day and night. s In applying for a remand at the Central Police Court, the Police Prosecutor told the Magistrate that the Crown alleged that Smith had been employed by Clegg for 18 years, that their operations were most extensive, and that people who had been allegedly defrauded had been paid interest out of their capital. The total defalcations amounted to £00,090.

MEDICAL AGENTS REMANDED

Two medical agents, Raymond Barr Brown, aged G 6, and Littleton H. Blunt. 30, "are charged ’ with having conspired between-January 3, 1929, aim April it). '1931, to cheat and defraud the Provident Medical' Society ' 1 and other persons of large sums of money. The police explained that the defendants were in practice in Sydney as medical agents, insurance brokers, medical accountants, . debt collectors and income tax adjustors. Tt is alleged that largo sums of money were paid to the two men as income tax,; unemployment, tax and insurance premiums, but bad not been paid to proper authorities. In addition, large sums had been handed to them for investment, but had been retained bv the defendants for their own use. Similar. allegations are made concerning the moneys of the Provident Medical Society, which is a sickness insurance fund for doctors. The police have secured a long adjournment of the ease in order to enable them to make a. thorough investigation of the books of the two defendants.

EX-SfU.LOTTOH ’S‘ ADM ISSION

The third case was that ol an examination in bankruptcy of an. ex-tsolie-j'fcbr, Edward’ Hawkins, who .admitted that although lie had received nearly £14,000 of clients’ money for investment he could not account lor it, and lie was now a pauper. He attributed his bankruptcy to a long illness of his wife, and his own serious illness. The audience in the Court consisted ol 20 former clients, mostly elderly women, who had given him fund* to invest.