SOLICITOR'S FRAUD.

New Zealand Herald, Volume LXVIII, Issue 20958, 22 August 1931, Page 13

SOLICITOR'S FRAUD.

HEAVY DEFALCATIONS.

ALLEGED AMOUNT OVER £200,000 FOUR YEARS' IMPRISONMENT. At the Quarter Sessions Court, Sydney, last week, before Judge Armstrong, William Carnegie Clegg, aged 50, a solicitor, and Leila Beryl Smith, aged 37, a clerk, were found guilty of (1) larceny, (2) fraudulently omitting tO; account for money received, (3) fraudulently, omitting to pay money received. Smith was recommended to mercy. "Before Clegg's arrest," said Detective Lawrence, "he was missing from the. State. It is not true that I knew where he was. I found out purely by accident* I saw a notice on the door of a hospital marked 'strictly private, absolutely no admittance.' I was there seeing my wife, and on the following night I saw Mra* Smith. I asked the matron had she a man named Clegg as a patient, and she said she had. I have a list, taken from thes books, showing the total defalcations-3 Mr. Watt, K.C., counsel for Clegg, objected. The Judge said that it would not make any difference in the sentence he intended to impose. Detective Lawrence: The total amount is £200,355. Clegg: That is absolutely untrue. Every, one of them is wrong. I make bold to say my books will not show what the detective says. Whatever I can do in the future as regards my clients will be dona.i His Honor: If that is done I will consider a reduction of the sentence. For; many years Clegg was an honourable man. Mr. Watt, K.C., said he had frequent opportunities of seeing Clegg, in the stress of circumstances," and although a less honourable man might have resorted to a subterfuge, Clegg had not. His Honor {to Clegg): You have been actively engaged in an honourable business for many years. A large amount of money has been fraudulently obtained from members of the public. If a serious payment is made to the parties who have come forward in this case I will consider the question of reducing the sentence I am about to impose. You are sentenced to hard labour for four years. In binding over Mrs. Smith in two sureties of £SO each to be of good be-! haviour and appear for sentence if called upon within three years, Hi 3 Honor saidl "You are still a sick woman. You have been very much under the control of Clegg. You served him well for many years. Owing to the recommendation of the jury, which I fully accept, I will not pass sentence." Continuing, His Honor said:—"Clegg and his office business have been honourably known for many years. This fgJl, which has taken place within the last ccuple of years, is a very bitter and terrible one." Mrs. Smith collapsed as she was about' to be bound over. At the request of Mr. Watt, permission was given to Clegg's mother to see him before he was taken to the.Long Bay; penitentiary. A further charge of fraudulently; omitting to pay money received was pre» ferred against Clagg and Smith, thij amount mentioned being £SOO. They wer|» remanded for trial.