ALLEGED FRAUD

New Zealand Herald, Volume LXX, Issue 21647, 13 November 1933, Page 11

ALLEGED FRAUD

HARMAN AND PARTNERS DENIALS OF COMPLICITY LONDON, Nov. 10 The trial was continued to-day of Martin C. Harman, Herbert 11. Pounds, Berkley F. Conigrave and E. G. Changeat, who are charged with conspiracy to defraud in connection with the Korean syndicate, styled the Cho-sen Corporation. Conigrave stated that if he had seen the company solicitor's letter advising against Japanese companies acquiring shares as proposed, he Certainly would have given serious attention to it. Regarding the deal for the Japanese purchase of Cho-sen shares at £l, the Judge remarked that " the arrangement was made between Harman in one capacity and Harman in another capacity." The Solicitor-General, Mr. D. B. Somervell, submitted that it was a " fairy tale."

Conigrave then said: " I cannot agree with that." Pounds stated that he had known Conigrave for a quarter of a century. He was introduced to Harman and became a director of the Cho-sen Corporation. Ho had no idea of shares being purchased from the Harman group and actually knew nothing about the transactions. He had signed no cheques, and only one Cho-sen Corporation letter. He relied on the experience of Harman and Conigrave. He certainly would not have acquiesced if anything criminal was being done. Witness said he was an entirely independent man and would ha've disapproved if he had known that the Japanese were made to pay £1 each for C hosen shares at Harman s disposal at September 2. He had first heard of this in Court.

Changcat denied that he took pait in any schemes of conspiracy to defraud. The trial was adjourned.