“TAKEN DOWN”

New Zealand Times, Volume LII, Issue 12095, 24 March 1925, Page 4

“TAKEN DOWN”

INVESTORS LOSE CAPITAL. “NO RECOURSE AT LAW.” Per Press Association.’ DUNEDIN, March 23. Putting forward as the foundation of a business a confident prediction of big profits, a Dunedin man, it is alleged, has secured and lost for lenders sums totalling over £20,000. One man is said to have lost £I9OO. It is stated that the scheme has been in operation a long time, and that some women with small capital are among the losers, who number 40 or 50 persons. The modus operandi is stated as under: Mr “X.” was a trusted business man with a large circle of acquaintances. These he approached separately, swore them to secrecy, and obtained a sum to help to finance f 3 profitable deal, returning in a week or two and handing over a handsrfne profit, retaining the principal for another \enture, and also borrowing more for a larger venture. Again a handsome profit was disbursed to the lender, and the principal retained, and so on, ad infinitum, till the lenders became chary. Mr “X.” is said to have broken down completely in health. It is further stated the lenders have no recourse at jaw.