BANKRUPT ON TRIAL.

New Zealand Herald, Volume LXIII, Issue 19321, 7 May 1926, Page 14

BANKRUPT ON TRIAL.

THREE CHARGES PREFERRED. THE KEEPING OF BOOKS. CONCEALMENT OF PROPERTY. MONEY HANDED TO BROTHER.

A caso involving a senrchingv.investigation of business transactions, mainly the buying and selling of land, was heard in the Supreme; Court, yesterday, when the trial of Oennaro Nigro (Mr. Leary), on tliree charges of breaches of the penal section of the Bankruptcy Act was commenced. Accused pleaded not guilty. .Mr. S. L. Paterson, for the Crown, referred to the involved nature of the case and said it would bo necessary to deal with a great many figures. The allegations were principally that Nigro did not deal honestly and fairly with his creditors. There were two charges of failing to keep proper books. One of these was that he omitted to keep books netling out sufficiently his business transactions and clearly showing his position. Accused was a dealer in land and as such was required to keep proper books. 'lke hooks must be such that at any moment the, real state of affairs may be revealed. K was not. sufficient excuse to say that an accountant, had been employed to keep the books if the books did not show the state of affairs of the business concern. Brother As A "Dummy." The. second charge was spmewhat more serious as it involved wilful failure to keep books, the purpose being to defeat his creditors. At first accused said he had no books but after an action by the official assignee books were produced. It would he shown that the books nowproduced did not reveal accused's true position and that they differed in material points from a statement supplied by bankrupt to the Official Assignee. Accused was also charged with concealing portion of his property, the sum of £3139. It was alleged by the Crown that this money was fraudulently handed to accused's brother, who was only a "dummy" for him. Mr. Paterson traversed accused's land transactions, referring specially to an ex change of a farm at To Kuiti owned by W. R. Frank, for a block of shops at Grey Lynn and a farm at Karaka, owneel by accused. The Crown alleged that at this time accused was in financial difficulties and that when the transaction was completed accused transferred the value of the stock on the Te Kuiti farm to his brother. Money Subsequently Becovered. This was done against the contingency of bankruptcy, so that when he had passed through the bankruptcy and bad received his discharge, he would be in possession of this money, the sum o £3139, which should have gone to his creditors. Accused did in fact become bankrupt, but the amount mentioned was subsequently recovered by the Official Assignee in an action against accused's brot her. \Y. S. Fisher. Official Assignee, said the sum of £3133 was not disclosed in accused's statement of assets and liabilities. William Valentine Worth, public accountant, said the books produced were made up by him on statements supplied by accused's solicitors for the purpose of preparing income-tax returns. These books would be quite proper if it were ascertained that all accused's transactions went through them. Brother's Items Supplied. In reply to Mr. Justice Stringer, witness said he had since been informed by accused's solicitors that some of the items supplied as accused's for the purpose of making up the books were in fact his brother's. Cross-examined by Mr. Leary, witness said it was quite possible that Nigro did not know he had prepared these books. William Robert Frank explained the deal with accused and said he und ;ratood he was dealing with accused alone, not being aware of the existence of the brother at the time. Witness was cross-examined at length l>y Mr. Learv. who sought to show that in the exchange accused received the Te Kuiti farm for his block of shops and that the stock on Frank's farm went to accused's brother in exchange for the hitter's farm at Karaka, so that the sum of £3139 was never accused's property. After further evidence for the Crown had been heard the case was adjourned until this morning.