"DUD” CHEQUE SWINDLES

Sun (Auckland), Volume IV, Issue 977, 21 May 1930, Page 18

"DUD” CHEQUE SWINDLES

“BANKS SHOULD TAKE ACTION” PREVENTIVE SCHEME WANTED Special to THE SUN CHRISTCHURCH, Today. "Big business people in the City have assured me that for the small amount they would save by avoiding valueless cheques, they would lose thousands if they began turning down,, all cheques,” said Senior-Sergeant O’Grady, in the Police Court yesterday, when the case against 'William Thomas was being heard. Thomas pleaded guilty to 38 charges of false pretences.

Counsel, Mr. D. W. Russell, said that fraudulent cheques had been drawn on three different banks. There should be some, system controlled by the Associated Banks whereby individual banks could warn each other. Mr. Russell also commented on the fact that accused had obtained cheque books so easily. The senior-sergeant explained that on one occasion accused had represented to the bank that he had an account.

Mr. E. D. Mosley, S.M., said it was a pity that some preventive system could not be brought into vogue. It was worse still that various tradespeople could allow themselves to be taken down, In fact, it was incomprehensible. He remarked that some business people had given more than £4 in change on a cheque when only a few shillings’ worth of goods had been purchased.