FUGITIVE FINANCIER.

New Zealand Herald, Volume LIX, Issue 18120, 19 June 1922, Page 7

FUGITIVE FINANCIER.

BEVAN RUN TO EARTH.

ARREST MADE IN VIENNA. EXTRADITION PROCEEDINGS By Telegraph—Presa Association—Copyright (Received 6.5 p.m.) A. and N.Z. VIENNA, Jim© 16. When charged at the Criminal Court., the man arrested on Thursday admitted that he was Gerard Bevan, for whose arrest a warrant has been issued in London in. connection with the failure of the City ; Equitable Insurance Company. He had l been living under an assumed name with I a Frenchwoman.

It is reported that Bevan, after attempting suicide, stated that he did not gain anything from irregularities in the City Equitable Company's finances. Extradition proceedings are being taken.

A warrant for the arrest of Gerard LeeBe van, for alleged fraud in connection with his actions as chairman of th 9 City Equitable Fire Insurance Company, was issued, at the beginning of March. The liquidation of the City Equitable Company on February 3 was followed a few days later by the failure of Ellis and Company, one of the oldest and most pro rainent stock broking firms in London, of which Bevan was senior partner. Bevan had previously left London by air for Paris, ostensibly bound for the South of France under medical orders. On February 22 he was seen at Naples, where he endeavoured unsuccessfully to obtain a viae cs his passport for Constantinople. By instructions his passportwas confiscated, but as at that time a warrant for his arrest had not been issued, the authorities had no ~ower to detain him and all trace of him was lost.

Details of Bevan's financial career were revealed at the Bankruptcy Court's inquiry into the affairs of Ellis and Company on March 2. Bevan, in 1914, held 51 per cent, of the firm's capital of £200,000, but he. had £1,000,090 in 1921, whereas the partners' holdings were unaltered. Bevan controlled the financial operations, from time to time reporting transactions of £1,000,000 and £500,000 in connection with new industrial issues. The partners disliked these large commitments, but did not interfere until the spring of 1920, when Bevan promised to discontinue,, but he resumed his old ways without consulting them. In the meantime Bevan made a fortune while they were no richer. On the contrary, compared with pre-war times, they had lived more economically. They had no idea of trouble until January 10, when Bevan asked to see the partners, but did not attend the meeting, sending a message: " It does not matter as a lot may happen in the next 48 hours." The receiver announced that the gross liabilities were • £2,000,000, of which £536.000 was proved by the Equitable Life and other companies with which Bevan was connected. The assets were £47,500, plus book debts,' which would realise £200,000. The partners attributed the crash to the heavy depreciation of industrial securities in 1921, the immediate cause of bankruptcy being the collapse of the Equitable, in which they were large shareholders.