GAMBLING AND DEBTS

New Zealand Herald, Volume LXIX, Issue 21253, 5 August 1932, Page 12

GAMBLING AND DEBTS

WINNER OF £3OOO PRIZE BANKRUPTCY ACT CHARGES JURY'S PROMPT DECISION [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Thursday Thrco charges under the Bankruptcy Act were preferred in the Supreme Court to-day against John Moug, who won £3OOO in an art union in 1930. The charges were* —(1) That with intent to defraud his creditors ho concealed or removed £SOO within two months of the date of an unsatisfied judgment for £232 15s 6d obtained against him on September 24 by Thelma Stone; (2) that on January 29, 1932, having been adjudged bankrupt, ho did by gambling and unjustifiable extravagance in living bring about his bankruptcy; (3) that, having been adjudged bankrupt, ho did within three years before the commencement of the bankruptcy make payments out of the regular course of business, not being for the ordinary expenses of himself and family. Moug, vvlio was not represented by counsel, pleaded not guilty. Without retiring, the jury returned a verdict of guilty on all three counts. Purchase of a Club The Crown Prosecutor said the present prosecution was a somewhat unusual one. The Act was framed by the Legislature for the protection of creditors from certain offences committed by men who went bankrupt. There was no crime in anyono bankrupt. The crime lay in a man doing certain acts, prior to and leading up to his bankruptcy, which were deemed by law to be fraud upon his creditors, or something tantamount to fraud, by cheating them out of their just ! rights; or, if he had brought about his bankruptcy by improper conduct, j Early in 1931, Moug, with a Mr. and Mrs. Clifford Baxter, agreed to purchase a place known as the Dominion Club, the Crown Prosecutor continued. This contained a certain amount of valuable furniture, arid the purchase price was £llOO. Tt was purchased from Mrs. Thelma Stone. On September 9, 1931, two instalments amounting to £312 12s had not been paid. At that time Moug had £2OOO in a bank on fixed deposit. Nine days later proceedings were taken to attach a portion of this £2OOO to satisfy judgments for £312 12s which had been made against 1 him. Disposal of Money ; Moug wrote a letter to the bank, and the bank released the money from fixed deposit. The money was disposed of as follows:—£3l2 12s was paid in respect of the two judgments; £282 17s 5d was paid to the bank in respect of an overdraft granted; £BSO was appropriated under a trust deed for Moug's wife and child; and the balance, of a little more than £SOO, was paid to Moug on September 21. On September 9, the Crown Prosecutor added, there was a further instalment of £232 15s 6d owing. That was not paid •; when the fixed deposit was released some . days later and on September 24 Moug had nothing left. Samuel Tansley, official assignee, Wellington, said that Mong was adjudicated bankrupt on January 29, 1932> and subsequently supplied a statement of his affairs. His liabilities were set down at £269 4s 6d and his assets nil. Later tho liabilities were increased to £BSO. Wit- ' ness read a statement made by bankrupt at a creditors' meetings. | Evidence by other, witnesses for the Crown was given on similar lines to the Lower Court hearing. Statement by Accused When asked if he wished to give evidence, Moug said that ho only desired to make a statement from the dock. He said that in October, 1930, he won £3OOO in an art union. In December«ho was introduced into a club known as the Dominion Club. In the March following he was induced to buy the club for £llOO in company with a Mr. Baxter, who was supposed to take a half-share. A deposit of £SO was paid. The concern did not go too well and he (accused) had to buy Baxter out and get a manager in. The club still did not pay and he eventually gave it up. " The club was a gambling club and I have done all my money in," Moug said. In a short summing up His Honor said that on September 22, 1931, accused received £SOO in cash from his solicitors, and on September 23 he raised £9O on his motor-car. On the following day, according to his own statement, all this money was gambled away. The jury then returned a verdict of guilty on all counts without retiring, and Moug was remanded for sentence.