BUILDER ON TRIAL

New Zealand Herald, Volume LXXVIII, Issue 24024, 23 July 1941, Page 8

BUILDER ON TRIAL

CREDIT BY FRAUD ALLEGED Two breaches of the Bankruptcy Act were alleged against Frederick John Fawcett, building contractor (Mr. Dyson), who was tried before Mr. Justice Callan yesterday. He was charged with having obtained credit by fraud within three years of being adjudged bankrupt. It was alleged that accused obtained and had not paid for building materials valued at £652 by making a false statement of his affairs on July 29, 1939, and that ho obtained and had not paid for building materials valued at £704 by a false representation on September 6, 1939. Accused was adjudged bankrupt in June of last year. Mr. N. I. Smith, for the Crown, said that accused had oeen engaged by the State Housing Department in the ereotion of State houses. He submitted to Smith and Smith, Limited, a statement which was supposed to set out the amount of money the State Housing Department owed him. In point of fact this was some thousands of pounds too much, but on the strength of it the firm gave him substantial credit on two occasions. When accused went bankrupt his assets were found to be £1206 and his liabilities over £6600, showing a deficiency in the estate of £5400.

A statement accused prepared showed £4700 owing him by the Department, whereas there was only £IOO7 to come, Mr. Smith continued > and the Crown case was that accused could not have failed to be aware of the difference. Later he showed £7464 owing him when the true amount was only £3045. In February of last year ho was owing Smith and Smith over £3OOO, and he hnd told them that the whole of his interests in State housing contracts had been assigned to a hank. C. K. Smith, a director of Smith and Smith, Limited, and Auckland manager, said he would not have _ given accused credit if ho had known his true position. The case was adjourned until to-day.