FALSE PRETENCES

Otago Witness, Issue 3100, 13 August 1913, Page 25

FALSE PRETENCES

THE FRENCH SENSATION.

PARIS, August 5.

M. Deperdussin, an aeroplane builder* has been arrested at the instance of A financial institution. The amount involved is £52,800.

August 6,

Deperdussin is accused of obtaining £1,250,000 from the Industrial and Colonial Bank and £32,000 elsewhere by falsa pretences. His total liabilities are estimated at £1,500,000.

August 7.

The arrest of Deperdussin came as a thunderclap, as his credit seemed to boos firm as the Bank of France. It is 15 years since he first had dealings with tha Comptoir Industrial et Colonial, when mutually profitable transactions in tha purchase of silks resulted. Formerly tha bank’s representative personally witnessed the silk deliveries, but latterly this duty was neglected, and this enabled fictitious purchases to be made.

The bank’s losses affect certain consortium, which lent aid to the bank.

Under pressure Deperdussin confessed his forgeries, and pleaded with th< Comptoir not to dishonour him. He promised & reimbursement by October, when he would receive the first sum of 800,000 franca year. Outside this Deperdussin’s aeroplan* The directors, however, were unable to hush the matter up owing to the vaatnesi of the fraud.

Before a magistrate Deperdusein said he had realised for a month past that ha was a ruined man, and he admitted that he had squandered money in luxury. H« had obtained 8,000,000 francs from ether sources by fraud. Gradually the Comptoir placed implicit confidence in Deperduasin, and advanced to him whatever he asked, much of which, instead of going into silk, went, it ia alleged, into his private expenses and the aeroplane industry. The day of reckoning was deferred by his forging false receipts. His defalcations during the past five years must have averaged 4,000.000 or 5.000.000 franca a year. Outside this Deperdusein’s aeroplane schemes netted a profit of £40,000 yearly. The money has gone into lavish grandeur.

The assets are reckoned at £4OOO. Mr Herman, a director of the bank, states that the dealings rote from small beginnings to 20,000,000 francs a year, and were so important, that they formed a special department of the bank.

August 8,

One effect of Deperdussin’s arrest is the possible stoppage of his aeroplane works. Strenuous efforts are being made to prevent this. The army possesses many of Deperdussin’s machines, which are likely to become useless if there is a closure, owing to the difficulty of testing and repairing them. Deperduesin told the magistrate that* he spent his money on aviation, and that he had refused a large sum to sell his secrets. August 9.

Deperdusein explained to the magistrates how he deluded the bank. When he was in financial difficulties in 1902 he submitted a scheme for buying silk for cash and selling it to the leading Parisian houses on credit. The profit was never below 12 p'er cent., out of which ho paid 8 per cent, to the bank. He became intoxicated with his success, and turned to dishonest means. II a speculated on a colossal scale, and gained the bank’s confidence. He lulled the bank by paying a share of the interest out of advances, and he spent the money on sporting and his aviation enterprise. Kf had not seen a yard of silk for years.