FRAUD CHARGES

New Zealand Herald, Volume LXXII, Issue 22027, 6 February 1935, Page 13

FRAUD CHARGES

SHARES IN COMPANY TWO MEN ON TRIAL CONTENTIONS BY DEFENCE [by telegraph—press association] WELLINGTON, Tuesday The trial of Ernest Mabin Gilmour, aged 39, accountant, and Charles Ernest Vickers, aged 44, clerk, who are charged with conspiracy to defraud and false pretences in connection with the sale of vendors' and contributing shares in the Craftsman Manufacturing Company of New Zealand, was commenced in the Supreme Court to-day. The evidence was mainly on the lines of that given in the Lower Court. Harry Valentino Roberts, liquidator of the company, appointed by shareholders in 1931, was cross-examined by Mr. Leicester, counsel for Vickers, regarding the directorate and management. Counsel said that the defence alleged mismanagement and that the accused were being made scapegoats. In spite of the Crown Prosecutor's objection the questions were allowed by Mr. Justice Smith, who remarked, "I think Mr. Leicester is merely impugning the directors." The witness said he had investigations made as liquidator into the allegations suggested and obtained the authority of Mr. Justice MacGregor to prosecute the accused. The hearing was adjourned.

The joint charges against the accused were that between July, 1930, and March, 1931, at "Wellington and elsewhere, they conspired with each other and with another man to defraud eight persons of divers sums; that on of about March 25, 1931, with intent to defraud they obtained from E. M. Herrick £250 by falsely representing that the company had secured large orders for floodlights from the Wellington Harbour Board and from General Motors; that in August, 1931, they obtained, with intent to defraud, £2OO from W. H. McKinney by false representations regarding Craftsman Lights. Vickers was charged with obtaining, with intent to defraud, £IOOO from James John Patterson, at Manaia, and from F. Jenness, at Wellington, £250 and a diamond ring valued at £SOO. The charges against Gtfmour were of procuring, with intent to defraud, the payment of sums from the following persons: —F. L. Marshall, Wellington, £SO; William Claud Hanson, Wellington, £200; J. J. Patterson, Manaia, £500; W. F. Stevens, Marton, £250; J. J. Patterson, Manaia, £175; J. T. Benge, Upper Hutt, £IOO.