UNUSUAL CASE

Southland Times, Issue 19823, 20 March 1926, Page 7

UNUSUAL CASE

ALLEGED DEFRAUDING OF CREDITORS. LEASE OF A HORSE. (Per United Press Association.) Gisborne, March 19. An unusual case came before Magistrate Levvey to-day wheiu George Campbell, a drover, who became bankrupt some time ago, appeared on a charge that being a bankrupt on November 6, 1925, at Makauri with intent to defraud his creditors he concealed the mare, Cynalia, since the date of an unsatisfied judgment by Robert Foote on July 27, 1925, and further on September 8, 1925, he did not, to the best of his knowledge, disclose to the Assignee all his property and for what consideration he disposed of the mare Cynalia, and thirdly, on November 6, 1925, he fraudulently removed the said mare, Cynalia. Accused pleaded not guilty to all the charges and elected to be dealt with summarily. Mr Nolan, for the prosecution, said the information was laid under the Bankruptcy Act. On July 22, 1925, judgment was obtained by Foote for services rendered in training Cynalia. On August 28 Campbell became a bankrupt on his own petition, but it would appear that no disclosure was made in any of the statements that he owned a mare. At the meeting of creditors one asked him what he had done with the mare and he said he had sold the filly to his sister for £l5. Evidence would be given that Mr Rodden, of Ruatoria, was in Gisborne for the Poverty Bay club’s races. A day or so before the races Campbell met Rodden and told him he had a mare he didn’t know what to do with and desired to lease the animal and the parties later entered into an agreement to lease. On November 6 the two obtained registration from the New Zealand Racing Conference and an agreement to lease the mare for three years was entered into, Campbell to receive 15 per cent, of the winnings over that period, Rodden having the right of purchase at- £3OO. After evidence had been given bearing out counsel’s statement Charles Blackburn, Deputy Official Assignee, said Campbell never mentioned the filly in his statements. Witness discovered by accident the mare had been leased by Campbell, so he communicated with the New Zealand Racing Conference to obtain particulars of the lease and subsequently sold the mare to Rodden for £3O. For the defence Mr Brosnahan said Campbell was being pressed for money and sold the mare to his sister a few days before the bankruptcy and used the proceeds, amounting to £l5, to file. It was admitted that Campbell signed the lease but he acted for his sister, as he had done in previous deals. Counsel said the terms of the lease were drafted by Miss Campbell. Accused gave evidence supporting the statements of counsel. Witness was severely cross-examined by Mr Nolan. After other witnesses for the defence had been heard, the Magistrate said, in the course of judgment, “I may say at once that I believe neither defendant nor his sister, as the discrepancies in evidence are so great as to make their story nebulous. In my opinion the documents have been executed with apparent skill but not sufficient skill to deceive the (/.hurt. The story is not acceptable to me and I do not accept it. Accused will be convicted on the three charges.” The Magistrate told accused that his previous good record alone saved him from a sharp sentence, for that kind of thing would not be tolerated. He would be convicted and admitted to probation for two years, conditional on taking out a prohibition order and paying the costs of the prosecution.