Huge Stock Frauds

Sun (Auckland), Volume III, Issue 886, 1 February 1930, Page 11

Huge Stock Frauds

ROUND UP OF BROKERS Nation-Wide Conspiracy CANADIAN PUBLIC LOSES HEAVILY HUGE frauds ill financial dealings in Canada are revealed by investigation into the affairs of several big broking firms. In addition to the 16 brokers arrested yesterday, seven others have been arrested, and a nation-wide drive against the conspiracy is being undertaken.

United 11.l 1 . -I —By Telegraph—Copyright Reed. noon. VANCOUVER, Friday. The assignment of two more firms is a feature of a nation-wide drive against an alleged wholesale conspiracy by brokers to defraud the public. At Victoria, Hugh Allan, Ltd., the oldest firm at Winnipeg, Stobie Furlong and Co., and Matthews, Ltd., were assigned. The latter closed all offices, leaving Saskatoon and other centres without trading. There is no trading in Ottawa, because all brokers have been suspended by the Exchange. There was a sensation at Calgary, when the suspended millionaires, I. W. Solloway, of Solloway Mills, Ltd., and D. F. Patterson, appeared at the Exchange, trading in defiance of the Exchange. They were ordered to cease trading. Both were ejected, and their

previous trading cancelled. Transactions were then resumed. This drive is likely to compel legislation banning all except cash trading in stocks.’ In Ottawa a provincial investigator compelled one firm to buy back all the stock sold in a dubious mine. In addition to the sixteen brokers who were arrested here yesterday, seven further arrests were made at Toronto, where five firms were suspended from the Stock Exchange. The seven accused brokers were charged and remanded on bail of £20,000 each. The public are in a panic owing to the prices of stocks on the Toronto, Vancouver and Montreal Exchanges slumping dramatically. The Toronto brokers were arrested at dawn in their beds after an audit by instruction of the Ontario Government of the books of 60 firms. Their bank accounts and books were seized.