AUDACIOUS FRAUD

Otago Daily Times, Issue 22911, 19 June 1936, Page 18

AUDACIOUS FRAUD

CHARGES OF FORGERY ACCUSED COMMITTED FOR SENTENCE POLICE CONGRATULATED The sequel to an audacious attempt by an ex-employee of a bank to defraud the Bank of New Zealand of a large aum of money was heard in the City Police Court yesterday morning before Mr H. W. Bundle, S.M., when James Alexander Fleming was charged that, on June 3, 1936, at Dunedin, he forged a bill of exchange on the Bank of New Zealand, Wellington, for the sum of £834 16s Bd, purporting to be drawn on Furness, Whity, and Co.. Ltd., with the intention that it should be acted upon ns genuine, and, further, that, on June 0, knowing the document to be forged, he did procure a young woman to cause Alexander Chinholm ,to act upon it aa genuine. The accused was represented by Mr J. G. Warrington. The prosecution was conducted by Chief Detective Young. BANK EMPLOYEES’ EVIDENCE Harold Wiremu Wolstenholrac, head bills bank clerk at the Bank of New Zealand, Dunedin, stated that it was his duty to sign all drawings under letters of credit if they were cashed, at the bank at Dunedin. He had examined the bill of exchange produced. Which purported to be signed by him. and the signature was a forgery. „ Alexander Chisholm, bank teller ein " ployed at the Bank of !Ncw Zealand at Dunedin, stated that on Juno 0 he was on duty at the bank at about 11.15 a.m. He was busy at the time, and there was a queue waiting at the grill. There was a woman in the .qdeue,; and, when it came her turn, she presented the bill of exchange produced, and he examined the document. It purported to have been signed by Mr Wolstenholmc, who was the head of the bills department, and who had to sign all such bills. _ It also boie what purported'to-be the initials of the bank • manager with instructions to cash it. Witness paid out £833 15a Bd, having deducted the sum of £1 IS for exchange. He paid out 40 £5 notes. 500 £1 notes, 228 10s notes, and £l9 ,15s 8d in silver and copper. - The money was put into two canvas bags and, taken away _by the woman who had,produced the bill. Shortly after she had gone witness became suspicious, and made inquiries, as a result of which he immediately reported the matter to the police.

THE ACCUSED’S PLANS Evidence was then given by a typist, whose name was suppressed by the magistrate, that on June 4 she had received a letter through the letter box which purported to come from “A. G. Spence. The envelope contained a - pencilled letter, a bill of exchange with pencilled writing on it and a blank bill of exchange. There was also 2a in stamps. She was instructed to type a letter from the pencilled on« and to type on the blank bill of exchange the pencilled writing from the other one and forward the work to "A. G. Spence, care of the Chief Post Office. Dunedin. She performed the work and directed tho letter aa instructed. , , , Miss “ X," a olprk, stated that she had attended a commercial college and, on June 6. the director of the college told her that he had given her name to a. person who was applying for a clerk and had supplied her telephone number. Later a man calling himself Mr Jenkins telephoned her at her home and questioned her about her qualifications. On Saturday, June 6, at about 9.15 a.m., she again received a ring from the same person, who told her she had been appointed to the position and that she was to meet, hi® outside the Carlton Hotel at 10.If' that day. She was to bring an attache case with her. If he was not there she wad to go to the Chief Post Office for a letter. He was hot at the place for the appointment and she went to the Post Office and inquired for letters addressed to her. She received one which contained a number of documents relating to ship*' charters and- similar matters. It also contained a typewritten letter giving instructions about her employment. It purported to come from Furness, Whity and Co., Ltd. A bill of exchange and a letter to a taxi firm were also in it. Her Instructions were to cash the bill of exchange and put the money in the attache case and deliver- it at the office of the Gold Band Taxis with a letter referred to. She cashed the bill and received the sum of £833 15s 8d in two canvas bags, which she placed in her attache case. She was instructed to deduct .£l9 15s 8d from the amount, and she did so, and the remainder she handed to the girl at the Gold Band Taxi office. The magistrate commented that the witness seemed to have been most unfortunate in being involved in the matter. The Chief Detective remarked that tho position had been arranged for the witness through the director of the college, and. ..naturally, she had acted in good faith.

The magistrate then ordered the witness’s name to be suppressed and suggested that she be referred to as " Aliss X.”

Joan Griffon, a clerk employed at the Gold Hand Taxis, stated that on June 6, at 11.45 a.m.,,the previous witness called and handed in an attache case and a letter asking that the cose bo delivered. She handed it to Mr Godfrey, one of the drivers. William Roy Godfrey, an employee of the Gold Band Taxis, stated that, at about 11.81 a.m. on the date mentioned, he was instructed to take an attache case from the depot to the Cavendish Chambers in High street. His Instructions were ,to leave it beside a letter box just inside the door, and he did so. DETECTIVE'S EVIDENCE Detective Sergeant Hall stated that at about 11.45 a.m. on June 6 he commenced investigations into the matter and, at about 6.30 p.ra., in company with Acting Detective Brown, he went to 47 Stafford street and there saw the accused. He said to him: “I want to see you about your exploit at the Bank of New Zealand this morning. You did a very silly thing. The' accused replied: “I know.” Witness then took the accused to his bedroom and asked where the money was, and the accused indicated a drawer in a duchcsse. The attache case containing £774 in notea was found in the drawer. Witness also recovered £27 6s 8d in the accused s pockets. In a suit case, which the accused claimed as his property, witness found an envelope addressed to A. G. Spence, a bill of exchange made out in pencil and a pencilled letter. He also found a printing outfit and green and red inks which Um accused said he had used in making the forged bill of exchange. Eleven blank bill forms, five pieces of paper _ showing where the accused had practised signatures —some of them similar to those on one of the bills of exchange—were also found. Witness also found two pieces ot pawr showing printing similar to that on the bill of exchange.- Witness took the accused to the Detective Office where, after being warned, he volunteered to make a statement which was taken down.

CONFESSION OF ACCUSED

■Witness then read the statement in Tvhieh the accused said that from April 10 1030, t 6 November 12, 1934, he was employed in the Bank of New, Zealand. Since then lie had had difficulty in obtaining employment. Ho had worked at the Uoslvn Mills from January 10 to May 29, 1930. He had conceived the idea of obtaining some money and bought a shilling book of demand draught forms. He then wrote to a typiste and asked her to make out a demand draught for £834 IGs 8(1, and ho sent her a form and some money to pay for the typing. Me sent this letter on June 3 or 4 and received the draught about -une o. fie then bought a rubber stamp and put “ Not Negotiable ” across the draught and also “Furness, Whity and Co., Ltd. He signed it “S. Beale,” for toe manager. and “P. M. Cameron.’ for the accountant, He then telephoned a commercial college and asked for a bookkeeper or tvpist and one was recommended. He later got i» touch with this rdil by telephone and asked her to meet him outside the Carlton Hotel. Ho slated that his name was Mr Jenkins, and told her if he did not meet her to collect

a letter addressed to her at the Post Office. He saw the girl wait outside the Carlton Hotel and followed her to the Post Office, where he saw her collect the letter. Afterwards he saw her go to the Bank of New Zealand. He watched her come out of the bank with the money and take it to the Gold Band Taxi office. He watched the driver deliver the bag at the Cavendish Chambers in accordance with his instructions, and he went at once and collected it. He took it to his rooms and put it in a drawer. He told Miss “X ” to keep about £2O IGs Bd, and that he would later let her know where to take it. Actually, he never spoke to the young woman except over the telephone. Since obtaining the money he had paid out £7 10g to the Otago Aero Club, £2 5a to a Mrs Cameron. £1 8s to the Silver Fern taxis, and had spent £1 17s in small amounts on sundries, making a total of £l3 0s 6d. Ho admitted that lie was acquainted with banking procedure, and when be entered the service of the bank he had been used to spending a considerable amount of money. He had been out of work foxtwo years, and was short of money when lie gave way to temptation. The young woman who collected the money knew nothing of his scheme, and would not know him if she saw him. Continuing his evidence, Detective Sergeant Hall said that the total amount of the money recovered was £Bl9 1S« Id. To Mr Warrington: The printing outfit was finite a simple one, such as could be bought at cheap stores. The accused was frank all the way through the interview. ami made no attempt to brazen the affair out. The total amount not recovered was £l3 17s 7d. This concluded the case for the prosecuThe accused pleaded guilty to both charges and was committed to the Supreme Court for sentence. The magistrate congratulated the police on the promptitude with which they had acted, and on having brought the matter to a successful conclusion.