MISAPPROPRIATIONS ALLEGED.

Lyttelton Times, Volume CXVII, Issue 17335, 25 November 1916, Page 7

MISAPPROPRIATIONS ALLEGED.

CHARGES AGAINST A SOLICITOR. 1 G. B. RITCHIE IN COURT. ACCUSED COMMITTED FOR SENTENCE. 'At'; the Magistrate's Court yesterday, before Mr T. A. B. Bailey, S.M., George Berry . Ritchie, solicitor, was charged on : various counts with the misappropriation of trust funds, the charges dealt with hoing the wrongful conversion of a sum of £338 16s 8d on May 8, 191.6, being, trust moneys in the estate of Diedrich Kruse; deceased, of which accused was a. trustee. A further charge related to the alleged wrongful conversion of a Mini of £l6 10s, in'the same estate, on May 13, 1.916. Mr S. G. Raymond, K.C., appeared for the prosecution, and. Mr Alpers re■presented the accused. Thomas H. Caverhill, shearing mar chine agent; produced probate of the will of Diedrich Kruse, under which, by deed dated March 7, 1908, produced, witness was appointed a. trustee. 'By deed dated March 8. 1912, the accused was appointed co-trustee with witness in place of James .Tamieson. The Kruse estate consisted of land find mortgage securities. Accused was soli-, citor for the testator during his lifetime, and for the estate since testator's decease. Accused received principal and interest paid by mortgagors, witness handling no cash. Since last December witness .had been asking accused for detailed statements regarding the estate, but did not get them. Witness told accused he proposed to hand over the estate to the Public Trustee. Accused said the trust funds were in his trust recount. Witness signed a discharge of mortgage from M. A. Thomas j n February, 1915, produced, signed by witness and accused, under which £3B 16s Sd was payable to the estate; Witness had never seen the money. The discharge was brought to him for signature by accused's clerk. Witness placed the matter in the hands of his solicitor. Mr Guningham, on July 11, 1916. By instructions, Mr Cunihghahi -wrote asking for either a detailed statement or access to the books of the estate. There wa.s no response. There was a mortgage security (produced) given by George King to the trust estate. Witness heard nothing of a payment of £l6 10s interest by King to the estate on April- :i2, 1916. The amount was payable to accused as solicitor for the estate. George Lisle, land agent, formerly clerk in the employ of accused,-gave evidence regarding a deed under which, in 1908, James .Tamieson and Thomas H. Caverhill were appointed trustees of the Kruse estate, attested by witness, and regarding 'a deed, of mortgage Thomas to Jamiesou and Caverhill. securing £32.5) dated 1911. Alfred Grover. formerly clerk in accused's employ, gave evidence regarding his attestation of a deed appointing accused a trustee of the Kruse estate, in 1912, in place of Janies Jaraieson. Witness received a cheque for £l6 10s from George King on account of the Kruse estate, on behalf of accused, and issued a receipt. The sum was paid into accused's trust account at the National Bank. That account was operated upon by accused personally. Arthur Bailey; clerk in accused's employ since May last, gave evidence regarding his attestation of a discharge | of Thomas's mortgage signed by Caverhill and accused. He produced books I of account used by accused in his ofI fice.

James Seymour Milne, sub-account-ant, National Bank of New Zealand, Christchurch, produced a copy of accused's general trust account from April 29, 1914. to September 30, 1916, aiid of accused's private account over a similar period. ' On May 8, 1916, £709 10s 9d was withdrawn from the general •trust account. That was the last considerable withdrawal. These accounts were operated upon by accused personally and by no other person. On February 18, 1915, £338 8s 2d was paid in to the general trust account, covered by a cheque by Mr A. Thomas for £338 16s Bd, less exchange. On May 8, 1916, £l6 10s was paid into the general trust account, covered by a cheque by G. King for that amount. Matthew- Albert Thomas, farmer, Ohoka, gave evidence that he made a payment of £338 16s 8"d to accused in discharge of a mortgage to Knise's trustees on February 17, 1915, by cheque, produced. He was given a receipt, but did not get a proper discharge until a few weeks ago. Georgo King, fireman, Starland Theatre, gave evidence that he borrowed £650 from th c Kruse estate in 1903, on mortgage: He paid £l6 10s as halfyear's interest in April last to accused by cheque, and was given a receipt, produced. John Roberts Cuningham, solicitor, gave evidence that lie was instructed by T.H. Cayerhill on July 11 last to apply to accused for all securities and documents relating to the Kruse estate. On July 27 several documents and a journal were handed over. The journal was confined to the transactions of the Kruse -estate. No balance had been drawn since 1908. The last entry in regard to the general trust wis made on March IS. 1913. Accounts kept for various beneficiaries, under the will of Diedrich Kruse. separately, were not.entered up much later than March, JJ3.1.3. either. King's mortgage for ibo'J

was handed to witness, and Thomas's mortgage, together with a discharge. Thomas Gibson., detective, gave evidence that lie arrested n<x:used on warrant on October 21 last and took possession of a cheque-book and bank-book, the property of accused. The only largo cheques recently paid out by accused ."were one of £709 odd and- one of £2O odd.

This concluded the case for the prosecution on the two charges advanced. Mr Alpors said accused would plead guilty.On resuming after lunch. Mr Raymond explained that it was proposed to dispose of all the remaining charges that afternoon. After consultation with Mr Alpers, it had been decided to incorporate all the remaining charges in one charge, involving £3309 10s. In view of accused's plea on the two preceding charges, the evidence would be considerably shortened. Mr Aldbi-s said that, while he could not adviso his client to plead guilty to individual amounts, his client would plead guiltv to the lump sum amountof £3309 10a. Mr Raymond said that alternative charges which were laid did not amount to the same aggregate sum as the lump charge, becausa.some of the money was said to have been legitimately applied. The accused was then charged with having wrougfullv converted to his own use on May 8, .1916, a sum of £3309 10s. Alternative charges related to the theft on October 19, 1908. of £400; on Mav 6, 1905), of £600; on March 18, 1910, of £550; and on June 8, 1911, of £230,- the property of Thomas Hensman Caverhill ana James Jamiesou. Further, accused was charged with the wroncful conversion, as trustee, of sums of£oO. £SO and £125 respectively. Thomas H. Caverhill save formal evidence as in the previous ease, testifying that accused acted as trusteesolicitor for the estate of Diedrich Kruse, deceased. James Seymour Middloton,_ sub-ac-countant. National Bank of New Zealand, gave evidence regarding accused's deposits in and withdrawals from the bank since October, 1908. John Andrew Ambrose, assistant land registrar, Christchurch, gave evidence regarding discharges of mortgages to the Kruse trustees registered in his office. The mortgages were indicated by number only, to shorten the proceedings, and were produced. John Roberts Cuningham, solicitor, gave evidehce that- by instructions from T. H. Caverhill he investigated accused's administration of the Kruse estate, commencing his work in July last. He had investigated the books and searched the Land Transfer Office. Since pleading guilty earlier in the day, accused had rendered witness assistance in ascertaining the position of tlie estate, and a statement (produced) was made with accused's assistance. The statement showed that at the end of June, 1908, the registered securities of the estate amounted to £7130, and there was £770 cash in hand, making a total of £7900. The securities at present in existence amounted to £3936, and deducting £IOO claimed to have been paid by George Kins; off his mortgage the value oi securities now in existence was-£3836. There was a receipt to show that accused paid £2OO to one of the beneficiaries under the will, and £2OO to another beneficiary. That left a total unaccounted for of £3664 6s Sd. The previous charges had accounted for £355 6s Bd, leaving a. balanco to be accounted for of £3309. To Mr Alpers: In .recent years there was no evidence that accused had sent m any bill of costs or made any charge for commission in respect of work done for the estate. There seemed no system for deduction of commission on interest collected for beneficiaries. It was probable that if costs and charges were"rendered the amount of accused's defalcations would he reduced by a substantial amount. This conoluded the case for the Crown ~i The accused pleaded guilty, and was committed to the Supreme Court for sentence, bail being allowed in ac r cused's own recognizance of £SOO and I two sureties of £250.