FRAUDULENT CONVERSION.

Otago Daily Times, Issue 19978, 21 December 1926, Page 3

FRAUDULENT CONVERSION.

SHAREBROKER PLEADS GUILTY. DEBENTURES MISAPPROPRIATED. ACCUSED COMMITTED FOR SENTENCE. Howard Beech am Pattrick was charged that, on October 1, 1925, having received, on behalf of John O’Halloran, two debentures valued at £230, on terms requiring him to account for these, or to pay the proceeds thereof to the said John O’Halloran, he did fraudulently convert them to his own use. Two further charges of having, on June 12, 1925, and October 15, 1925, received debentures to the value of £333 15s and £lls, the property of Russell Robert Laidlaw and Winifred Elizabeth Spooner respectively, and having converted the proceeds thereof to his own use, were - Iso preferred against accused. Mr C. J. L. White, instructed by Messrs Mondy, Stephens, Monro, and Stephens appeared for Pattrick, and Chief Detective Lewis conducted the case on behalf of the police. John O’Halloran, a labourer, said he knew accused as a member of the firm of Pattrick and Laidlaw, with which he had done business about the middle of 1925. At the beginning of October of the same year he gave accused £235 to purchase New Zealand Brewery debentures which, he thought, stood at 23s at the time. These debentures he had never received, and, as a matter of fact, he had never seen them. He left them in the custody of the firm. Most of the business in connection with the debentures had been done with Pattrick, who said he would put them in the bank for safe custody. Later on he had mentioned selling the debentures, but accused had told him to leave them where they were, as they were going up in price. Eventually witness had been asked by Pattrick if he wished to sell these debentures. On witness replying that he did, accused had asked if he had the scrip. Witness replied that he had not, as Pattrick had previously agreed to put them in safe keeping, and he (witness) had not seen them since. The numbers of the debentures were 2850 and 2851 —this he knew, as Mr Laidlaw and Pattrick had both given him the numbers, and told him not to be uneasy about the bonds. To Mr White: He thought it was about two months ago when the conversation regarding the sale of the debentures took place. He was not sure whether he had received any intrest on them or not. Russell Roberts Laidlaw said he was a looser, residing at Lumsden, He knew the firm of Pattrick and Laidlaw. In June, 1925, he arranged with the firm to buy two £IOO New Zealand Breweries (Ltd.) debentures. These were bought at 22s per unit of one pound. He also bought, through the firm, another £IOO debenture about September, 1925. He had no acknowment of the last purchase. He had received interest on behalf of these debentures. He had not at any time handled these debentures; in fact, he had not seen them He did not know the numbers of them. He had not at any time instructed anyone to sell these debentures. Lilian Ruru Mathewson said she was a clerk employed by the firm of Pattrick and Laidlaw. She knew a Mrs Winifred Elizabeth Spooner. She was residing in Auckland. Mrs Spooner opened an account with the firm on June 23, 1925. She left with the firm, about October, 1925, a New Zealand Breweries (Ltd.) £IOO debenture. The number pf the debenture was 691. She had seen it in the firm’s safe. She had no knowledge of any instructions given to the firm as to the disposal of that debenture. An inquiry subsequently arose as to the debenture, but it could not be found. She had searched the books, but no record of its disposal could be found. She had also searched the book as to the disposal of New Zealand Breweries' (Ltd.) debentures Nos. 2850, 2857, 2764, 2765, and 3179, but no record of them could be found. James Hamlin Walker, a shareholder carrying on business in the T. and G. Buildings, said lie remembered accused calling at his office on September 1, 1925, and requesting the loan of £2OO on the security of two bonds numbered 2850 and 2851, of the face value of £IOO each. Accused had asked him to hold them as security and dispose of them when he thought fit. Witness had sold them to Mr Harman Reeves on October 23, 1925. The deal was put through as an ordinary transaction. To Mr White: As far as witness knew, accused was an honourable business man, and a reputable member of the Stock Exchange ; and as its secretary, for some time, ho had carried out his duties satisfactorily. Any transactions which witness had had with accused had always been satsfactory, bufc he knew that accused had. lost some £ISOO in connection with a company in which he was interested, and that he had also contracted heavy medical expenses. Etty Eileen Robinson, an accountant employed by Fenwick Bros., stock brokers, said a member of that firm had died recently. Witness produced a book of the records of the late Mr Fenwick’s share transactions. This showed that on August 24, 1926, he sold on account of H. B. Pattrick two debentures, tos. 2764 and 2765, the price being £ll3 19s Id each. On October 15, 1925, they also sold on account of the accused two debentures. Nos. 3179 and 691 for £ll4 2s 8d each. Robert Lean, detective, stationed at Dunedin, said that on Tuesday, December 14, he arrested the accused on a warrant for one of the offences for which he w’as now charged. He warned accused in the usual way and he said he could clear the whole matter up, but he preferred not to say anything about it then. He would take time to think it over. He saw accused next morning, when he made a statement which witness took down. He admitted all the offences. ... , Mr White said to simplify the nrocedure and to avoid the expense of bringing Mrs Spooner from Auckland he would admit on behalf of the accused having received the debenture from her, and that he dealt with it without the authority of Mrs Spooner. . . , . Accused, through his solicitors, pleaded guilty to all the charges, and was committed to the Supreme Court for sentence, bail being allowed in his own recognisance of £350 and two sureties of £125 each. He was also required to report daily to the police. __________