SCHEME OF FRAUD

New Zealand Herald, Volume LXIX, Issue 21328, 1 November 1932, Page 10

SCHEME OF FRAUD

DISCLOSURE IN COURT FIGHTING INSURANCE CASES STATEMENT BY' SOLICITOR Allegations of the existence of a scheme for contesting insurances claims in Court were made during the hearing of a charge of perjury in the Supreme Court yesterday. The matter gave rise to some prelonged exchanges, between Mr. Allan Moody, who was cross-examining, and Robert E. Fawcett, solicitor, a witness for the Crown. The allegations were made during the trial of Ernest Cheadle before Mr. Justice Herdrnan on a charge of committing perjury during the hearing of a claim for damages as a result of a street motor accident. Mr. Moody was pressing: the witness Fawcett as to how he came to be concerned in tho case, and Fawcett stated that a man whom he named had come to him with a proposition. This man offered to finance claims against insurance companies in cases where evidence was weak and people had no money. He would make an agreement with an injured person whereby tho injured person would get half the amount recovered, and that agreement would be har.ded to witness. Then this man would prepare the brief, see tho witnesses, hand them over to him and brief him, guarantee him costs if it came to trial and in any case would give him half the amount he. got. The Companies Informed "I decided that this was not. straight," said Fawcett. "I consulted tho president of the Law Society, and also I informed my friend, Mr. Atwool, insurance adjuster, that such a fraud—in my opinion it was a fraud—had been successful, and was going to be worked again." Fawcett said ho also saw a representative of the insurance companies and told him everything, except the name of the man who had approached him with the offer. Mr. Moody; So you worked yourself into tho case by seeing the insurance people ? His Honor: You have no right to say that. He did what was perfectly right. Fawcett said that the insurance representative had sen'; for him. Mr.; Moody: You cat Mr. Dickson out altogether ?—No. Have you conferrad with Mr. Dickson ?—I have. The affidavit lias been drafted by Mr. Dickson. Police Commissioner Told Fawcett said he had suggested ringing up the Commissioner of Police with a view to getting an indemnity for Cheadle if the whole of the evidence involving the financier was disclosed. He had previously told the commissioner that this sort of thing wan going on. He told Cheadle that if he was prepared to tell the whole story he would ring up the commissioner, but he would not make any promise until he had the word of the commissioner, in writing if possible. Cheadle wanted £250 to get the evidence. Mr. Moody: You were not instructed to go as far as that ? Fawcett: You knew, Mr. Moody, it is quite a wrong thing to buy evidence. Mr. Moody: You were able to lend assistance to the police ?—I was. Mr. Moody: Tlnit is a nice way of pntting it. The police will appreciate that, I am sure. At a later stage in the case DetectiveSergeant Doyle ssid Mr. Fawcett had made some inquiries before the matter reached him, and Mr. Fawcett give him the results of those inquiries.