FICTITIOUS WORKMEN.

New Zealand Herald, Volume LXIII, Issue 19469, 27 October 1926, Page 16

FICTITIOUS WORKMEN.

SCHEME TO OBTAIN MONEY. BOROUGH FOREMAN'S FRAUD. CHARGES AGAINST A CLERK. ALLEGATION OF COMPLICITY. A scheme of obtaining money by drawing pay credited to fictitious names entered on the pay sheets of the Onehunga Borough Council was described in the Supreme Court yesterday when Trevor Graftyn Smith, aged 19, formerly a clerk employed by the Onehunga Borough Council, was charged with the theft of £3O, the property of the National Bank of New Zealand, and with the theft of various sums, totalling £274 6s 4d. The alleged thefts had taken place at various times; up to May last and in the Lower Court Smith was charged jointly with, the Borough Council's foreman, David Sefton, who was alleged, to have stolen an additional £4l Bs. Sefton pleaded guilty and was sentenced by the Court, but Smith denied Sefton's statement that they were both engaged in the thefts —excluding that of £3O from the National Bank—and shared the proceeds equally. Systematic Plan' Alleged. Smith repeated at the Supremo' Court yesterday his plea of not guilty. He was represented by Mr. Tong. Mr. Patersori, who appeared for the Crown, said the charges resolved themselves into two classes. The theft of tlje money from the National Bank was in a class by itself, and the other charges were part of a systematic plan operated by Smith and Sefton. One of accused's duties as pay clerk had been to pay the borough workmen on Wednesday of each week. This he did in company with Sefton, who knew all the men and conveyed Sefton in the borough motor-car to the different scenes of work. The name of Jackson and later those of Way and Willis had been added to the pay sheets. No such men were in the employ of the council, but the wages were drawn week after week. Denials by Accused. The charge of the theft of £3O from the National Bank, said Mr. Paterson, followed an occasion when Smith was overpaid to that extent by the bank teller, but he denied he had received the money. He later admitted it to the town clerk, and refunded the money to the manager of the bank. Following this incident, accused agreed to resign from the council's employ. . Several witnesses, including the town clerk, Mr. H. A. Yockney, and workmen employed by the Borough Council, gave evidence. Detective White detailed a statement Smith had made, in which he denied any knowledge of the payment of wages to fictitious persons, cither by himself or by Sefton. In a later statement he said that of the amount of £3O overpaid to him at the bank he had used portion of it to settle a betting transaction* but ho would not disclose with whom the transaction was made. Witness asked him whero he got the money from to speculate in horse-racing, but this ho refused to say. Mr. Tong: It is strange that no reference was made to it in the statements ? Witness: It came up after the statements had been signed. Did you tell him the Onehunga bank matter was "'over and done with ?" Witness: No. At the time I was told by Spiith that the matter was merely an error, and not being aware of the details I did not pursue the matter until I heard more about it. I then questioned him again. Evidence of Sefton. David Sefton was next called. He said he made out a false time-sheet in the name of L. Jackson, and handed it to the storeman. Smith knew of this, and they divided the money, witness signing the pay-sheet for "Jackson." Smith and witness decided to put another name, H. Way. on to the time-sheets, so there would be more to divide between them. "We were.both hard up," said witness. "I had had a distress warrant, and needed money. I have a family of four children. I do not really know why Smith ne : eded ♦he money." ; In answer to Mr. Tong, witness said he had collected union fees from some of the men. He admitted he had on one occa-. sion got a man whom he had dismissed to sign two pay-sheets, which he returned to the office. He had never asked Smith to sign any of the sheets. He admitted .he had mentioned in a statement to the police that he had suggested to Smith he should sign some of the sheets, but Smith refused to do so. When arrested on r July 5 witness made to the police statements describing the scheme, ajid he made no mention of the accused. He first mentioned Smith in a statement made on July 18. "I was the worst of the two," added Sefton. The hearing was adjourned until this morning.