CONSPIRACY CHARGE

Taranaki Daily News, 30 December 1929, Page 12

CONSPIRACY CHARGE

SUM OF £03,090 INVOLVED.

EX-NEW ZEALANDER ARRESTED.

Sydney, Dec. 20. The most extensive financial swindle in which the aid of New South Wales police has been invoked since the fam-' ous Defence frauds of the war years is that now under consideration by the Courts, following the sensational crash of a firm registered as Cheapley’s, Ltd. The firm sprang up suddenly with the backing of a man who came from New Zealand about 20 years ago, and in many ventures had shown ability in moneyspinning above the average. He is one Albert Arthur Ellisdon, aged 60, merchant, and he now stands charged, with five others, on a conspiracy count which, the police say, involves at least £65,000. The firm of Cheapley’s, Ltd., is the parent company behind a series of cheap auction rooms which have been scattered throughout Sydney during the past six months, and at which, it was thought a most profitable business was beinng done. A system of credit; was established through figures supplied to the usual reference' organisations in Sydney, to which wholesale firms turn for substantiation when dealing with retailers to any extent. These agencies, it is understood, 'were convinced that Cheapley’s, Ltd., was an organisation with more than enough backing to carry through their projects, and it was largely on the word of the agencies that so many wholesalers and indentors filled orders from Cheapley’s. About three months ago, the police

found, Cheapley’s, Ltd., indulged in an orgy of buying. They took stocks from practically every wholesaler and indentor, especially those in the jewellery trade, and in that space bought £65,000 worth. Business was never so brisk at the auction rooms, but the police discover that the goods sold there were priced in most instances much below the buying figure. All this buying had been done on 90day bills, maturing early in December. There was no whisper of anything untoward until, late in November, Cheapley’s, Ltd., filed its schedule in bankruptcy, and the wholesalers and indentors have been left high and dry with the now worthless bills. A fortnight’s rigid investigation by detectives resulted in warrants being issued for the arrest of nine persons con;

nected with the now bankrupt firm. Six of the warrants have been executed so far, and these led to the following appearances at Central Police Court: Albert Arthur Ellisdon, 60, merchant; Harry Roden, 39; Morris Abraham Kutner, *37; Daniel Joseph Rogers, 65; Albert Monroe Campbell, 27, auctioneers; and Harry Levy, 67, broker, were charged with conspiracy to defraud. The Police Prosecutor said that the defendants had disposed of goods at half-price, or any price. Only a small proportion of them had been recovered, and a considerable quantity had not been traced. All the defendants were remanded to February on bail of £2OO, the small bail figure fixed by the magistrate causing considerable comment in view of huge amount involved in the charge.