CHARGE OF FRAUD

Southland Times, Issue 21855, 4 November 1932, Page 6

CHARGE OF FRAUD

SOLICITOR FOUND GUILTY. REMANDED FOR SENTENCE. (Per United Press Association.) Auckland, November 3, The trial of Charles Stewart Leahy, aged 44, solicitor of Auckland, ended at the Supreme Court when a verdict of guilty on one charge was returned. Leahy was charged on two counts, with fraudulently applying the funds of a client, Frederick John Young, to another purpose than that for which he received them. The amounts were £25 and £ll4 12/4. Accused, who pleaded not guilty, was represented by Mr Dickson. In summing up his Honour stated that the essential feature of the case was that a sum of £176 was handed over by Young to Leahy with the definite instruction that it should be paid out pro rata for the benefit of Young’s creditors who were pressing him. “What you have to decide,” said his Honour, “is whether accused, after receiving this money as trustee, acted honestly or dishonestly. If you decide that he was not guilty of criminal intent and had merely got his account into a muddle, then it is your duty to acquit. If in your opinion the Crown has not established its case, Leahy is entitled to your verdict in his favour, but if taking into account all the facts of the case you decide that he is guilty, then you must have no hesitation in finding a verdict accordingly.” Dealing with the evidence in detail his Honour mentioned that Young in evidence had denied having authorized Leahy to invest Young’s money. Had this money been invested? There was no evidence that it had. When the regulations regarding the auditing of solicitors’ trust accounts came into force, it was necessary that these accounts should be balanced. Evidence regarding Leahy’s accounts was contrary to this. The jury returned with a verdict of guilty on the second count, that regarding £ll4. Accused was remanded until Monday for sentence.