FRAUD ATTEMPT ALLEGED

Taranaki Daily News, 18 February 1933, Page 7

FRAUD ATTEMPT ALLEGED

BALANCE-SHEET ATTACKED

INSURANCE COMPANY AFFAIR

“PURELY MUSHROOM TYPE”

CASE FOR PROSECUTION

By Telegraph—Press Assn.—Copyright. Sydney, Feb. 17.

The affairs of Associated Dominions Assurance Society Ltd., are involved in a case now before the City Court. Oswald Corkhill, aged 47, secretary, and William T. Page, aged 45, company director, were charged with having published a false balance-sheet ■ relating to the assets of the company, with intent to defraud shareholders.

The police prosecutor, Mr. Dovey, said the evidence would disclose that the balance-sheet had been prepared with craft and cunning, and that the liabilities amounted to nearly £336,000, of which £lOO,OOO had been cancelled. It was practically a one-man company, run by Page, with Corkhill a tool in his hands. Page provided himself with a salary of £2400 a year, and it was impossible to remove him while he held 20,000 shares, The other directors were more or less dummies.

The company, which was purely of the mushroom type, had been utterly insolvent for some time. A feverish attempt was made last September to acquire another company in order that its funds might be used to bolster up Page’s company, but the attempt failed. The hearing was adjourned. Mattison Brain, aged 46, company director, and Sydney Smith, 42, clerk, were charged with having conspired with Corkhill and Page to defraud the shareholders and policyholders of the Commonwealth Life Amalgamated Assurance Association Ltd. of large sums of money. They were remanded on bail until March 7.