ALLEGED FRAUDS.

New Zealand Herald, Volume LXVIII, Issue 20991, 30 September 1931, Page 9

ALLEGED FRAUDS.

BRITANNIA BANK CASE. ACCUSED BEFORE COURT. LARGE FINANCIAL SCHEME. By Telegraph— Press Association—Copyright. (Received September 2J). 7.45 p.m.) SYDNEY, Sept. 129. Philip James Mond and Victor Cunningham were to-day charged with attempting to defraud various persons by inducing them to become shareholders and depositors in the Britannia Bank, Limited, and other companies they were forming. Counsel for the Crown in outlining the case said the accused men knew each other in New Zealand. Mond, who arrived in May, proposed to Dr. Hunter, a director of the Ocean Investment Trust, that he, Mond, should take over tho trust. He said he was on a financial mission representing big English interests. Mond referred to Cunningham as his managing director, who was coming out from England. The money for tho registration of the Biihinnia Bank was drawn from the Ocean Investment Trust. Mond told Mr. Wilcox, a public accountant, who asked for somo guarantee, that £7,000,000 for capital for the bank was paid up in England; that he himself had paid £5,000,000 and Cunningham £15.000. Mond also said that he himself held a power of attorney from various gentlemen in England. Mond also got into touch with the directors of the Primary Producers' Bank, and proposed to them that they should hand that bank over to the Britannia Bank. When asked for his bona fides ha produced what he claimed to bo a power of attorney from Lord Melchett, Mr. Robert Mond, Sir Samuel Rothschild and Mr. Reginald McKenna. Detective-Sergeant Lawrence said Mond in an interview admitted that he had registered several companies on behalf of a wealthy syndicate, but refused to divulge any names. The capital for the Britannia Bank, he said, was subscribed in England. He was not asking for Australian money. It was cheaper to register the companies in Australia than in England, £SOO in Australia against £2700. Later at the detective office Mond said he was the individual shown as having paid £5,500,000 into the Britannia Bank, but he added:—"There has been no money paid at all. All I want you to do is to le; me leave the country with my wife. Our passage home is booked by a steamer leaving on September 15." Cunningham admitted that he had not paid any of the £15,000 shown against his name. He said: —"I haven't two bob. I want you to let me return to New Zealand."

Mr. Lawrence said Mond's scheme was to purchase companies and banks which had gone into liquidation and to combine banking, insurance and trustee work. Bank managers later admitted that the scheme was sound, but they wanted to know who Mond was. In reply to Mr. Manning, counsel for Mond, Detective Lawrence said Mond had not drawn any money for his work, and had not asked the public for money. In reply to Mr. Henery, counsel for Cunningham, the witness said the only false representation Cunningham appeared to have made was to say that lie had paid £15,000 into the Britannia Bank. Dr. David Hunter, in evidence, said he met Mond in July. Mond said he represented largo English financial inteiests and was related to tho Mond family in England. Ho was in Sydney to open bank, insurance and other companies. Mond told witness that it would be in his interests if witness became associated with the Britannia Bank. Witness saw something in the newspapers about the Britannia Bank, and asked Mond for his credentials. Mond showed him a cablegram containing the words " the big five." Witness asked him who " the big five" were. Mond replied: ' Five English banks." Mr. Manning: I understand that Dr. Thompson, of New Zealand, recommended you to consult Mond ? Witness: Yes. The case was adjourned until to-mor-row.