BANK NOTE FRAUD

Otago Daily Times, Issue 21217, 24 December 1930, Page 9

BANK NOTE FRAUD

THE ISSUE FOR ANGOLA. CASE AGAINST PRINTERS. BANK’S CLAIM SUCCEEDS. (United Press Association.) ; (By Electric Telegraph— Copyright.) LONDON, December 22. (Received Dec. 23, at 5.5 p.m.) In awarding the Bank of Portugal £531,851, with costs, Mr Justice Wright emphasised that Marang’s dramatic and elaborate fraud was unparalleled in the history of commercial life. His handsomeness, prepossessing manners, and credentials thoroughly impressed Sir William \\ atcrlow. Marang’s extraordinary ingenuity and resource were shown in the interception of. letters to the bank, enabling the production of a reply which practically forbade direct communication. he Government was almost, handing over ; the bank body and soul to Marang, thereby indicating the bank’s confidence. Mr Justice Wright accepted the fact that Sir William Waterlow wrote regarding the receipt of authorisation, but the letter was not received by the bank, otherwise it - would have prevented the proceedings. It was no reflection on the great company that it had been a victim of an ingenious trap, but the directors fell short of the standard of care which bank note printing required. If bank plates were used without authority the printers must hear the consequence. He pointed out that the bank realised nearly £500,000 from the assets of the conspirators. The case lasted 21 days and cost £50,000, of which £20,000 comprised counsel’s fees. . As a sequel to the Portuguese bank note frauds in 1925, the Bank of Portugal sued Waterlow and Sons, London, printers, in the King’s Bench - Division, claiming £1,115,000. The bank’s counsel said -that a Dutchman named Marang, who was later discovered to be a member of a gang of international forgers, went to Waterlow and Sons with a letter of introduction from p Dutch firm. He saw Sir William Waterlow (ex-Lord Mayor of London), who was then chairman of the company. He told a story which the bank submitted was incredible. It revealed a plot so full of leaks anil holes that it was amazing to find it successful. Marang said that a group of financiers had decided to assist the Portuguese colony of Angbla, which was financially embarrassed, He produced documents, 1 which turned out to be forgeries, authorising a Dutchman named Reis, W behalf of the syndicate, to print notes of the face value of £2,000,000, and the Bank of Portugal's authority for this. Specimen notes attached to the document showed portraits of the poet Devos. The . Waterlow firm pointed out that another firm had printed, them. Marang said that the Vasco da Gama notes that Waterlows had printed for the bank would .be acceptable. Marang impressed Waterlows with the need ff secrecy. s All the correspondence with the Bank of Portugal, except one letter, passed through Marang, who,, with his associates, forged replies. Meanwhile Waterlows’ agent in Lisbon warned the London house that Jie Bank of Portugal had ndt authorised the issue of colonial notes, and that many rumours were current regarding which it was unsafe to write, but-Waterlows ignored the" warning and delivered the-notes, after which Marang ordered a further lot of the value of £7500. All of the printed serjes were identical with, ’the authorised’ issue, resulting in the bank being unable to distinguish. them. Not. all of the 580,000 notes printed were circulated, but the bank'-paid’■ Marang’s notes to the value of £1,70(3.000. ' Eventually they ; were fordpd to withdraw the whole of the Vasco da Gama issue. Counsel added that Reis and another man., were sentenced, at Lisbon to 25 years’ transportation. Marang had been sentenced to two years’ imprisonment at The Hague, but in the meantime he had disappeared.