LEGAL TRUST ACCOUNTS.

Otago Witness, Issue 3566, 18 July 1922, Page 66

LEGAL TRUST ACCOUNTS.

FALSE DECLARATIONS ALLEGED. AUCKLAND July 10. As a sequel to the bankruptcy of the local firm of Hammond and Cracknell, three charges of having made false declarations in respect of that firm’s trust account, were preferred at the Police Court against James Waring Jameson. The evidence showed that accused forwarded to the officer in charge of the audit of solicitors trust accounts a certificate marked “audited and found correct,” with declarations to effect that certificates were true and correct reports. Accused had never made a report to the Solicitor-General in accordance with section 11 of the Act. An accountant gave evidence that the trust account books were kept in such a fashion that it was possible at any time to ascertain substantially the position of the trust fund. There had been a deficiency in the trust account since March, 1916. There were certain irregularities. Yloney had been advanced to clients out of trust funds without provision. Interest had been paid on moneys in hand, while the books also showed that the partners had overdrawn their profits, the overdrawings coming out of the trust funds. Ilad a schedule of the trust balances been extracted and compared with the bank balance at any time during 1916. the trust account would have shown a deficiency. The Official Assignee said the deficiency in the estate was about £45,000. nearly all the claims being for trust moneys. Accused pleaded not guilty and reserved his defence. Tie was committed for trial, hail being allowed in £IOO.