COTTON MILLS FRAUD

Nelson Evening Mail, Volume LVI, 11 April 1922, Page 2

COTTON MILLS FRAUD

HOOLEV SENTENCED TO IMPRISONMENT

(By Electric Telegraph—Copyright] (Australian and N.Z. Cable Association.)

LONDON. April 8

After a 2C days’ trial,' the jury found Thomas Fletcher and Bertrand Breakspear not guilty and the other air used guilty. Hooley was sentenced to three years’ imprisonment in .the general division, MacDonald was Pound over: Mallis sentenced to ten months’ imprisonment, and Dcmery to a year’s imprisonment, both in the second division. Hooley is appealing. I Ernest Torah Hooley, Thomas Fletcher (ex-Mayor of Derby), John. Angus MacDonald (ex-Mayor of Ilkeston) Thomas Llewellyn Demory (Hooley’s secretary), William Allred Wallis (solicitor), ‘ 'and Bertrand Breakspear (Hooley’s clerk), were charged with conspiracy to defraud in connection with the flotation of the .Jubilee .Cotton -Mills, Ltd., of Oldham. During the hearing of the ease it was stated that Elcteher purchased mills from the bankrupt firm, paying about l'350(). Fletcher then arranged with Hooley and MacDonald to float a company, Fletcher receiving £20,000 cash and'£3s,ooo in shares. The purchasers made no attempt to work the mill, but used it to create shares and debentures, which the public wore induct’d to huv I'v tile pretence that a dividend of *33;) per cent, had been earned and paid. Lewis lost about 0100,000 in deals with Hooley, £41,500 being in connection with tiro Jubilee shareholders. The dejiciency in connection with the Jubilee mills was'ol29,ooo.]