AMAZING DECEIT

New Zealand Herald, Volume LXXII, Issue 22250, 26 October 1935, Page 2 (Supplement)

AMAZING DECEIT

CLERK'S FRAUDS REVEALED POSING AS PHILANTHROPIST FAMILY GIVEN STOLEN MONEY In order to Rain a reputation as a philanthropist to poorer members of his family an insurance clerk robbed his employers of thousands of pounds. The amazing story of his deceit was unfolded at the OW Bailey, London, ■when the man, Sidney Phillips. aged 36 clerk, of South Norwood, was accused of robbing his employers, the Eagle Star and British Dominions Insurance Company, of £4730 over a period of eight years. Mr. Anthony Hawke, for the prosecution, explained that Phillips had been employed by the company for 18 years, and held a responsible position in the life insurance department. He had a salary of £376 a year and a substantial addition to it in the way of commission. His frauds were carried out by means of fictitious claims which he put forward for the surrender value of In this way he obtained cheques which he cashed, and money poured into ins pocket in a steady stream. Mr. R. C. Vaughan, defending, described the motive for the frauds as inexplicable. They had been going on so long that Phillips himself did not know what the defalcations amounted to. He started in the service of the company as a boy in 1916, joined the Artists Rifles and was wounded, tie afterwards went back to the company and rose to a good position. Had Phillips stayed in his employment he would probably have risen to £750 a year in salary, and would have been entitled to a pension of about £4OO a year when he retired. That he bad now forfeited. It was difficult to say why he had committed the frauds. He married in 1927 and had lived on perfectly economical and modest lines.

None of the money had gone in extras vaganee. " He has adopted the pose of philanthropist to help poorer members of his family with this stolen money," continued Mr. Vaughan. " He comes from humble origin, and he gained a reputation with his family of being successful and of being one who could be called upon to help them in difficulty. He started these frauds in 1926 to help a sister w"hose business was failing and who begged for money. From that time he helped his family lavishly.. His father was ill for four years, and he provided him with medical attendance and money. Phillips estimated that he assisted his father to the extent of £SOO.

" He also helped a brother to the extent of £SOO or £6OO. eventually paying for the emigration of this family to Jerusalem. Two other brothers received about £SOO each from him, the sirter £6OO. and a brother-in-law, whom he established in two businesses, about £IOOO. All he trained," went on counsel. " was an entirely meretricious reputation as a philanthropist. " He has now lost every thine that could possiblv hold value for him in his life. His wife is being kept in

charity by a brother in Spain. His homo is at an end. Tho reputation he gained has been exploded, and with it has gone all the family life he has treasured. He is also confronted with the fact that every one of his recipients must feel they have had tainted money. " This man knew it was impossible he would not be discovered sooner or later, and the last eight years of his life have been years of torture and misery. It is an intense relief to him that at last he stands where ho does to receive punishment, because that puts an end to the possibilities of further crime and the fear of disoovery." The Recorder remarked that Phillips could have stopped his criuie earlier had he wished. He had admitted committing the frauds for eight years. He had only been able to do that because of the trust placed in him —a trust which he had abused the whole time. The Recoitder added that he could not pass a less sentence tha»i one of five years' penal servitude.