NO TRUST ACCOUNT

Poverty Bay Herald, Volume LII, Issue 16209, 6 December 1926, Page 3

NO TRUST ACCOUNT

CHARGE AGAINST AUCTIONEER A matter of particular interest to auctioneers, which prompted the Chief Justice to issue ti warning to those engaged in that class of business, icamo before the Supreme. Court in New Plymouth, when Colin Leighton, of Stratford, appeared for sentence lifter having been convicted of fraudulently omitting fo pay over and converting to his own use certain moneys which were the proceeds, of goods sold at auction by him on behalf of clients. In tho course of the trial it was disclosed that Leighton had kept only Ouo account in a bank, into which nil moneys had been paid-. It wiis this aspect: of the, case which, .was .the sub-. |ect of special comment by the .judge. His Honor said it had criinc. to his knowledge 'that some, auctioneers in £hci district' did Hot keep trust ac-

counts, and they were running a grave risk in not complying with the prescribed, form of keeping their accounts. The relationship between an auctioneer and his client was 'a. fiduciary one, and the auctioneer was: not entitled to pay moneys received on behalf of clients into his ordinary business account: and subject them to the risks of that business. If auctioneers did that, the money became part of the circulating capital of the business and was exposed to a risk to which clients were not entitled, to be subjected. Prisoner was admitted to "probation for three years. tSSffSSSBSSSSSSSSSSSt 38 SB