FRNCH MONEY FRAUDS

New Zealand Herald, Volume L, Issue 15374, 8 August 1913, Page 7

FRNCH MONEY FRAUDS

AVIATOR UNDER ARREST. CONFESSION OF FORGERY. HUGE SUMS INVOLVED. ASSETS AMOUNT TO £4000. By Telegraph-Press Association—Copyright. „•■'_■ (Received August 7, 10.25 p.m.) Paris, August 7. The arrest of M. Deperdussin, the aviator, came as a thunderclap, as his credit seemed to be as firm as the Bank of France. It is 15 years since the prisoner first had dealings with Le Comptoir Industrial Et Colonial, when mutually profitable transactions from the purchase of silks resulted. Formerly the bank's representatives personally witnessed the silk deliveries, but latterly this duty was neglected, and that enabled " fictitious purchases to be made. The bank's losses affect a certain group which lent aid to the bank. Too Serious to Hush Up. Deperdussin, under pressure, confessed to the forgeries, and pleaded with the bank not to dishonour him, promising reimbursement by October, when he was to receive a first ; sum of 800,000 francs from the Gov- | ernment for aeroplanes. The head of the bank was, however, unable to hush the matter up, owing to the vastness of the fraud. - When he appeared before the magistrate, Deperdussin said he had realised for a month past that he j was a ruined man, and admitted that he had squandered the money in luxuries. He had obtained 8,000,000 francs from other sources by fraud. The bank placed implicit confidence in Deperdussin, and advanced whatever he asked, much of which, instead, of going for the silk, went, it is alleged, into his private expenses and his aeroplane industry. Evil Day Deferred. The day of reckoning was deferred by the. prisoner forging false receipts. The defalcations during the past five years must have averaged 4,000,000 or 5,000,000 francs a year. Outside this, Deperdussin's aeroplane schemes netted a profit of £40,000 a year. Ail the money has gone in lavish grandeur. The prisoner's assets are reckoned at £4000. M. Herman, head of the bank, states that Deperdussin's dealings rose from small - beginnings to 20,000,000 francs a year, and became so important that they formed a special.department of the bank.