FRAUDS ON THE BANK OF NEW ZEALAND.

New Zealand Herald, Volume XLIII, Issue 13081, 22 January 1906, Page 6

FRAUDS ON THE BANK OF NEW ZEALAND.

CONVICTION AND SENTENCE. [FTtOM OUR OWS CQBIUS9POSHKST.] London, December 15. Ernest Henry Lavixgton, alias King, described as a journalist, was charged before the Recorder of London during the current sessions, with obtaining credit to the extent of £7591 by false, pretences.

The prisoner pleaded guilty. Lavington had been a confidential clerk in the employ of Mr. Robert King, who carried on a largo business in New Zealand. When Mr. King was in London last year he tailed upon the manager of the Bank of New Zealand, and had ,1 conversation with him in connection with various matteis. Last September the manager of the bank received a letter in the name of Mr. Robert Kin,-, dated from Brighton, in which the previous visit was referred to, and also some of the matters of conversation which the manager had had with Mr. King, and the letter concluded with the request that the manager should purchase, through the bank's brokers, 200 CanadianPacific Railway shares. These shares were bought, and th? account, van sent on to the writer of the letter, who was asked to torward a cheque for the amount. In reply, a. letter was then received from the supposed Mr. Robert King, tsking that other slock might be bought, and promising to send a cheque if the Canadian-Pacific stock was taken up before settling day. It was supposed by the manager of the bank that the stock was for investment, but, finding from the second letter that the purchase was .-. speculative one. he wrote declining to carry out the second commission, unless a cheque sufficient to cover the margin required was received. As no cheque was received, the bank sold the stock at a, loss of £202. The prisoner, who was the writer of the letter. disappeared from Brighton without paying his landlady, and he was next found writing to a city firm of brokers in another name, instructing them to buy stock. As they had previously received a similar letter in a different name, the police were communicated with, and the prisoner was arrested in Edinburgh. He said he had the authority of Mr. King to use his name, and to buy the stock, but Mr. Muir (who appeared for the prosecution) said a telegram had been received from New Zealand denying this, and stating that the prisoner had left Mr. King's employment without notice.

A gentleman from Somerset was called to speak as to the prisoner's character. The Recorder sentenced prisoner to nine months' imprisonment with hard labour.