AN AMAZING SWINDLE.

New Zealand Herald, Volume LXIII, Issue 19418, 28 August 1926, Page 2 (Supplement)

AN AMAZING SWINDLE.

GERMAN'S GREAT HOAX. RECORD FOR *l5O YEARS. EXTENSIVE FRAUD ON A BANK. What was described as an amazing financial swindle was engaging public attention in Berlin recently. It was of the nature of a "Super-Koepenickiad." In it no fewer than 22 of the most prominent industrial concerns of the country were concerned. The Daily Chronicle correspondent told the- 6tory as follows: — The hero of this almost unbelievable taie is Herr Iwan Kutisker, who a few days ago was sentenced to five years' penal servitude and to a heavy fine for a swindle whereby the Prussian State Bank lost nearly 14,500,000 marks. The Judge described Kutisker as "a person of greater duplicity than any swindler known in Western Europe for a century and a-half." At the time when his name was before the public in connection with this case,

and when his dark deeds were coming to light, Kutisker actually had the, nerve to set up a concern which he called "Sales Organisation for German Industry, Limited." Its object was represented to be to assist German firms in doing business with Russia. * Kutisker set up a "man of straw" as head of this firm, and entered into negotiations with 60 or 70 industrial concerns throughout the country. With 22 of them he entered into agreements for the supply of enormous quantities of goods for Russia. Kutisker for a while kept his name, secret, alleging that. he. ;oCcu' pied such a high position that such concealment was accessary. Agreements which Kutisker concluded were for periods of five years, and Ke charged commissions, varying from' 3 to 5 per cent., "not merely on the total amounts, but also on business which any of these firms might do independently of his firm. These charges he justified on the ground that it was necessary to , bribe j heavily certain members of a Soviet commercial delegation in, Berlin, and also some prominent Bolshevist authorities in Moscow. Ho managed to obtain, a considerable portion of -these commissions;

and also he persuaded various firms .to give him full particulars of their business doings. This information he utilised in order to make highly lucrative coups on the Stock Exchange. One day, however, a representative of a certain firm called on Kutisker—who then stfl preserving his incognito. In the course of their talk a clerl entered the room and said, " Herr Kutisker, you are wanted on the telephone." So the great secret was out. The visitor was naturally astounded that he had to deal with such a notorious person, and. boldly said that the whole business was a fraud. t ■i" x Kutisker endeavoured to put a bold' face on the situation, and produced agreements as signed by many of the foremost German firms. The visitor knew, however, that one of these firms was doing its Russian business on its own account; so he went to the Soviet Commercial Delegation to make inquiries. There he learned that the delegation knew absolutely nothing of the whole affair, and that it must, therefore, be a swindle. The Soviet delegation then' issued a statement revealing the full nature of the fraud, and proving that, the delegation has had nothing whatever to do' with Kutisker. Tt is not known ivhat sums are actually involved in this affair, but the newspapers state they, must run into millions of marks. It is declared that the State attorney will take the matter up, and Kutisker will ba charged with fraud against more than a'score of firms.