FRAUD CHARGES

New Zealand Herald, Volume LXXII, Issue 22056, 12 March 1935, Page 12

FRAUD CHARGES

ALLEGED ACCIDENTS

INSURANCE CLAIMS /

TRANSACTIONS WITH CARS

CLOSE ,OF HEARING TO-DAY

The hparing of extensive fraud charges rotating to the financing of transactions in motor-cars was continued in the Police Court before Mr. F. K. Hunt, S.M., yesterday. Detective Sergeant, McHugh prosecuted. Alfred Ernest J lay, aged 30, motor dealer (Mr. Dyson), Norman Henry Fraser, aged 36, insurance assessor (Mr.-Dickson), and Alexander Frederick Murray, aged 32, mechanic (Mr. H. J. Butler), were charged with conspiring' on November 20, 1933, to defraud the North Island Motor Union Mutual Inswranco Company of £62 9s 6d; Hay, Fraser and William Kenneth Daniels, . aged 26, storeman (Mr. Aekins), with conspiring on January 18, 1934, and March 28, 1934, to defraud the same company of £l6 16s lOd and £39 12s respectively; Hay and Daniels with conspiring on August 19, 1934, to defraud Albert Shorter, of £80; Hay and Fraser with conspiring on November 9,1934, to defraud tho same porson of £110; and Hay and Henry Robert Kennedy, meat inspector (Mr. Singer), with conspiring on September S, 1934, to defraud Shorter of £7O. Oar Insured lor £IOO In giving evidence relating to tho first charge, which concerned Hay, Fraser and Mtirray, Milton Alexander George Satton, clerk, attached to the staff of tho N.I.M.U. Mutual Insurance Company, said that tho accused Fraser was emplpyed by his Company as senior claims assessor up to July 21, 1934, when ho left of his own accord. On November 11, 1933, a proposal for a comprehensive insurance policy was received by witness' office in respect of a motor-bar. The name of the owner was shown £ls Frederick Murray, battery mechanic, of Auckland. The proposal was accepted and the company agreed to insure the car for £IOO. On November 20, 1933, a claim for damage to the vehicle was received by tho company. It was set out that the car was /damaged on November 19 on the Whitford-Auckland road. The particulars in the claim form were filled in in the handwriting of the accused Fraser,, the claim being signed "F. Murray. In his report of his investigations regarding the supposed accident, the accused Fraser stated he had inspected t,he oar, ascertained the damage, and had obtained a quotation for repairs. Fraser had also submitted fourphotographs allegedly showing the damage to the car. A Statement to Police

On November 22, witness continued; accused had arranged for the repair work on the car to be carried out by the All-Cars Service Station at a net cost of /£6>2 9s fid. The accused Hay was the principal in the firm that secured the repairs. In a statement to the police, produced by Detective McWhirter, the accused Fraser said the car was bought by Hay in Tauranga in a damaged condition. Hay got the vehicle insured in the name of Alexander Frederick Murray, who was his mechanic, in the N.I.M.U. Insurance Company. It was then arranged that a claim should be made in respect of this damaged car, which was damaged, in fact, before the insurance was taken out. The sum of £62 9s 6d insurance was paid, and out of this amount the accused Fraser received approximately £3O. The accused Murray in his statement said he had signed the proposal at the •suggestion of Hay. He (Murray) had never owned the car mentioned on the papers, and never had it to damage. He had received no payment for signing the documents. The detective said that the accused Hay, in l a statement previously put in as evidence, admitted that the claim was a fraudulent one. Hay and Fraser pleaded guilty and were committed to the Supreme Court for sentence. The accused Murray pleaded'not guilty and was committed for trial.

Another Claim lor Damage

"With regard to the charge against Hay, Fraser and William Kenneth Daniels, Mr. Sutton said that on October 23, 1933, he received a proposal for comprehensive insurance on a cor, the owner of which was shown as the accused foaniels. The proposal was agreed to by the company and a policy for £IOO issued. On January 18, IS«4, a claim was submitted for damage to - the car.'The claim was signed "W. K. Daniels."- It was stated that the car had skidded on the Thames-Pokeno road. Fraser had submitted a report, and the repairs were carried out by the ' All-Cars Service Station at a net cost of, £l6 16s lOd. Witness said a second accident to the &&nie car was supposed to h<ivo occurred on March 28, 1934, as a result of the vehicle skidding on the Auckland-Hen-derson rdad and striking a bridge. It was again inspected by the accused Fraser, and, as a result of his report, repairs to the extent of £4l 2s were authorised at the All-Cars Service Station. With deductions, the payment made by. witness' company amounted

to £39 12s. The three accused pleaded guilty and were committed to the Supreme Court for sentence. Another Set ol Transactions

In giving evidence regarding the third charge, which concerned Hay and Daniels, Albert Shorter, proprietor of Shorter's Rental Cars, said that Hay came to him about August 19, 1934, and informed him he had sold Daniels a car for £l2O, and had received £4O as deposit. An agreement was drawn Up setting out the particulars of the sale, as supplied by Hay. Twelve promissory notes, each of £7 14s Bd, covering '.tho balanco due on the car, were preparod, and the documents returned by -Hay, signed by Daniels. Witness had paid Hay £BO, being the sum due to him on the sale. An amount of £72 was still owing to witness. Cross-examined by Mr. Dyson, witness said thnt Hay owed him between £350 and'£4oo on dealings he had had with witness. To Mr. Aekins, witness said ho had had about 12 dealings with Hay before the one'referred to in the charge. Two Charges Admitted

Detective •. McWhirter said tliat when searching the accused Daniels on the day of his arrest, he found a slip of paper on 'which were the particulars of cars sold to accused. Daniels said Hay had given; it to him in case anyone should make inquiries. Both accused pleaded guilty and were committed to the Supreme Court for sentence. To the charge of conspiring on November 9, 1934, to defraud Albert Shorter of £llO, Hay and Eraser pleaded- guilty and were committed to the Supreme Court for sentence. In addition, Hnv and Henry Kobert were charged with conspiring on September 3, 1934, to defraud Shorter of £7O. After evidence for the prosecution had been heard, the Court adjourned Until to-day, when the case will bo completed;