SOLICITOR’S FRAUD

Taranaki Daily News, 25 August 1931, Page 10

SOLICITOR’S FRAUD

HEAVY DEFALCATIONS. DOUR YEARS’ IMPRISONMENT. At the Quarter Sessions Court, Sydney, last week, before Judge Armstrong, William. Carnegie Clegg, aged 50 a solicitor, and Leila Beryl Smith, aged 37, a law clerk, were found guilty of (1) larceny, (2) fraudulenty omitting to account for money received, (3) fraudulently omitting to pay money received. Smith was recommended to mercy. ‘‘Before Clegg’s arrest,” said Detective Lawrence, “he was missing from the State. It is not true that I knew where he was. I’found out purely by accident. I saw a notice on the door of a hospital marked ‘strictly private, absolutely no admittance.’ I was there seeing my wife, and on the following night I saw Mrs. Smith. I asked the matron had she a man named Clegg as a patient, and she said she had. I have a list, taken from the books, showing the total defiflcations.”

Mr. Watt, K.C., counsel for Clegg, objected. The judge said that it would not make any difference in the sentence he intended to impose. Detective Lawrence: The total amount is £200,355.

Clegg: That is absolutely untrue. Every one of' them is wrong. I make bold to say iuy books will not show what

the detective says. AVhatever I can do in the' future as regards my clients will be done.

His Honour: If that is done I will consider a reduction of the sentence. For many years Clegg was an honourable man.

Mr. Watt, K.C., said he had frequent opportunities of seeing Clegg, in the stress of circumstances, and although a less honourable man might have resorted to a subterfuge, Clegg had not. His Honour (to Clegg): You have been actively engaged in an honourable business for many years. A large amount of money has been fraudulently obtained from members of the public. If a serious payment is made to the parties who have come forward in this ease I will consider the question of reducing the sentence ■ I am about to impose/You are sentenced to hard labour for four years. • In binding over Mrs. Smith in two sureties of £oo each to be of good be'-

haviour and appear for sentence if called upon within three years, his Honour said: “You are still a sick woman. You have been very much under the control of You served him well for many vears.° Owing to the recommendation of the jury, which I fully accept, I will not pass sentence.” Continuing, his Honour said: Clegg and liis office business have been honourably known for many years. This fall, which has taken place within the last couple of years, is a very bitter and terrible one.” Mrs. Smith collapsed as she was about to be bound over. At the request of Mr. Watt, permission was given to Clegg’s mother to see him before he was taken to the Long Bay penitentiary . A further charge of fraudulently omitting to pay money received was preferred against Clegg- and;. Smith, ;• the amount mentioned being £503. They were remanded for trial ;