OIL SWINDLE ALLEGED

Taranaki Daily News, 17 July 1930, Page 13

OIL SWINDLE ALLEGED

SENSATION AT WELLINGTON

AGENTS RECLAIMING DEPOSITS

POLICE BRING CHARGE OF FRAUD

Uy —Press Association. Wellington, Last Night. ■Startling allegations of dishonesty were made against M. P. Pimentel, of the Mecca. Oil Company, in a civil action which commenced to-day in the Magistrate’s Court. Three plaintiffs sought to recover the balance of amounts they had paid to him when they arranged to become district agents for the company. The evidence of two witnesses, one of whom was ii plaintiff, was hoard and the case is to resume to-morrow.

Pimentel was charged afterwards with fraudulently obtaining £lOO from Phillip Percy Wimsett by falsely representing he was a representative of the Mecca Oil Company. Bail of £lOOO and one surety of £lOOO was allowed.

In his statement of claim in the civil case G. TV. Wakefield, a salesman of Levin, said that in May last he entered into the contract with Pimentel and paid him £2OO. Pimentel was to supply him with certain oil. Wakefield said he was induced to do this by the representation of Pimentel that he was an accredited agent of the Mecca Oil Company and that the company was about to start in New Zealand. Consignments of oil were being shipped to New Zealand, he had been told, and some was already, here. These representations were fraudulent and false, Wakefield alleged, and as a result of them he had paid £2OO and had incurred expenses of £3l 10s, including rent of premises. He claimed accordingly for £209 10s, which was the sum of these amounts less a credit of £3O for oil which had been supplied. He claimed the same amount alternatively for failure to supply. Mecca oil to the value of £2OO as agreed. ' •

PLAINTIFFS’ CLAIMS SIMILAR. A similar claim for the same amount was made by R. L. Begg, Wanganui. P. P. Wimsett, Wellington, claimed £94 6s Id for failure to supply oil to the value of £lOO lees a small credit for oil supplied. Messrs. Treadwell and Cresswell appeared for the plaintiffs and Pimentel was represented by Mr. Harding. Arriving at Wellington in April, Pimentel advertised for salesmen for a company establishing itself in New Zealand, said Mr. Treadwell. Applicants were to take some capital. Wakefield called on Pimentel, who told him he was representing one of the largest oil companies in the world. He told the applicants that if they could put up amounts varying from £lOO to £5OO he would appoint them district managers for their territories. Wakefield was to be district manager for the Wairarapa. ‘‘Pimentel drew up an arrangement which was a most curious document,” Mr. Treadwell continued. “One would hardly think that men could be let into such a position as my clients have allowed themselves to enter. They were not asked to produce anything in the form of a credential. They were asked how much money they had. “I think you will find when Pimentel goes into the box that he is an extremely' able man but an utterly unscrupulous one,” Mr. Treadwell said. “If he had not been utterly unconscionable he would not have been able lb make sueh representations. We believe he received a very large sum of money from various people since he came here and we hope to find out what has happened to it.” Mr. Treadwell explained that Wakefield put up an amount of £2OO for his agency. “But as Pimentel went on advertising other lambs camo to the slaughter. He told a Air. Gibson that if he could produce a certain amount of cash he would get Wakefield to shift. Fortunately for him Mr. Gibson was not ready to supply the amount.” Air. Treadwell gave another example of a similar nature.

PURCHASE OF OIL AND TINS. “Evidence will be called,” said Air. Treadwell, “which will show that this man has been purchasing from the Standard and Texaco Oil Companies oil which he has been using for the purpose of this swindle. Second-hand tins were bought from other companies and the oil which was sold in them was said to be from the oil wells of the Mecca Oil Company. The American Trade Commissioner knew of no such Californian company.”

Air. Treadwell mentioned that the advertising material Pimentel used was printed by a local firm to whom defendant owed £157.

“It looks as if the agreement had been drawn up by some legal firm,” Air. Treadwell added, “but I do not want to suggest the solicitors who drew it up were aware it was to be used for a swindle.

“This swindle, as we allege it to be,” Mr. Treadwell continued, “would never have been possible without the large margins which exist between the wholesale and the retail price of oil. Oil which can be bought by dealers for 3s Cd a gallon is sold for 8s a gallon.”

Wakefield in evidence sa-id he had been attracted by an advertisement in a newspaper. He outlined his negotiations with Pimentel, his appointment as agent and the setting up of the business. I.ater he with Gibson called at Pimentel’s office in the D.T.C. -building. They met Wimsett on the landing with his mouth bleeding, Pimentel said he had an argument and had thrown a man out. Pimentel offered the Hawke’s Bay agency to Wakefield for £l5O. Wakefield later became suspicious and communicated with his solicitor.

Robert Leith Begg, Wanganui, gave evidence of a somewhat similar experience. He paid £2OO and received oil worth about £lOO. The oil had been unsaleable, the public Believing it to be second, or third grade. The ease was adjourned.