CONCEALMENT OF ASSETS

Northern Advocate, 18 August 1933, Page 2

CONCEALMENT OF ASSETS

ALLEGATION. AGAINST BANKRUPT. VERDICT OF NOT GUILTY. (Per Press Association.—Copyright.) . CHRISTCHURCH, Thursday, In the Supreme Court yesterday a charge- was heard against .John .Cram ley Rex, a bankrupt hotel-keeper, of not disclosing all his property- to the Official Assignee. The prosecution alleged that the accused tried to conceal the fact that he had £7OO in investments, ...

' James Hope Robertson, Official Assignee, said he first became aware of the £7OO when one of the creditors informed him the sum was represented by a debenture in the concern of Co.loseums, Ltd. Witness interviewed bankrupt, who made a statutory declaration that the sum belonged to his mother. Mrs Rex made a. similar declaration and witness decided not lo pursue the matter further.

William John Stacey, a solicitor, said Rex interviewed him in December, .1931, about a sum of £7OO. Rex said lie had £7OO. in the Post Office. His financial position: was bad . and Rex asked whether, in the event of. his bankruptcy, the money, would be traceable to him by the 1 Official Assignee. Witness had replied that,if it, were in the post -office it would be traceable.

In ;i later conversation, Rex asked if the. money, could be placed in the trust account of witness’ linn and, if it were there, whether it would be traced by the Official Assignee. Witness told him it would be traceable. Rex asked whether the money could be put in another name. Witness said it could not.

Later, witness continued, Lex; brought him £7OO in notes and the money was credited to Lex’s account, ffex did not toll witness that the money was his mother’s. The money was paid iii two sums under authorities signed by Lex, and, in effect, was lent, by Lex to A. F. Stacey, witness’ brother, who was concerned with Colosenms, Ltd. Two months after the money had been paid out witness suggested that he should get security for the loan, and witness prepared a debenture over Colosenms, Ltd. For the last year the debenture had not been of much value.

Cross-examined, witness said he would have nothing to do with the scheme suggested by accused. In May, a few days before Lex went bankrupt, witness entered into an agreement to pay the money to Mrs Lex, After the agreement was made difficulty was experienced in meeting payments,. and a writ was threatened. His partner, Mr C., .S. Penlington, then made a statement of facts to the Official Assignee., He would agree that, possibly, if there had been no threat of a writ, no disclosure would have been made to .the Assignee, Idle jury found Lex not guilty.