AN AGENT’S THEFTS

Otago Daily Times, Issue 24431, 17 October 1940, Page 6

AN AGENT’S THEFTS

FAILURE TO ACCOUNT INSURANCE MONEYS INVOLVED (Per United Press Association) CHRISTCHURCH.'Oct. 16. Ernest Clement O’Malley, an insurance agent, was found guilty in the Supreme Court to-day of theft in failing to account tor £SO received on December 2, 1938, from Flora Jessie Gillies, of West Melton, and for £5 17s 2d received on April 25, 1939, from Samuel William Higgins on terms requiring him to pay the money to the Australian Provincial Assurance Association. Mr Justice Northcroft presided. Mr A. W. Brown, for the Crown, said that O’Malley had received money from Mrs Gillies and. instead of paying it to the company, had opened a personal account at the Commercial Bank with it. When a policy was not forthcoming. O’Malley informed Mrs Gillies that he would repay the money. He gave her £3 in cash and a cheque for £47. which was dishonoured for lack of funds. O’Malley had received from Higgins a sum for the renewal of premium and had not paid it into the company. He had no authority to retain the money.

Addressing the jury, Mr E. S. Bowie, for the accused, said there had been no concealment by O’Malley, who had given Mrs Gillies and Higgins receipts on the company’s form, copies of which were sent bv him to the company. He submitted that the accused had no intention of depriving Mrs Gillies or the company of the ; money. In other qases O’Malley had been oernrtted to use premium moneys and to h eve, them debited against his account The same tiling had been done with the amounts in the charges His Honor said it was true that the moneys had been paid to O’Mallev for the company, but had been used by him personally. The question was whether this was done fraudulently or innocently. The company’s behaviour in retaining O’Malley's service? for a time mHit suggest that it did no* consider his action criminal. Against him was, the fact that he did not inform the comoanv that he had kept th° money O'Malley’s conduct in the. witness box might help in deciding whether his actions were fraudulent or innocent.

After a brief retirement the jury found O'Mallev malty, but added a strong recommendation to mercy as the comnanv had more or less condoned the offence. O'Malley was remanded for sentence on this charge and also on two charges of false pretences by issuing valueless cheques, to which he pleaded guiltv. The charges were that he defrauded Annie Blaney at Dunedin on September 7, 1939. of £4 19s 6d and Reginald John Scholium, at Rakaia. on June 3. 1939. of £4 15s.