“MECCA” OIL CO.

Timaru Herald, Volume CXXV, 17 July 1930, Page 9

“MECCA” OIL CO.

EXTENSIVE FRAUDS ALLEGED. By Telegraph—Press Association WELLINGTON. July 16. 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 Police Court. Three plaintiffs sought to recover the balance of amounts which they had paid to him when they arranged to become district agents for the company. The evidence of two witnesses was heard, one of them being a plaintiff, and the case is to resume to-morrow. In his statement claim. G. W. Wakefield. of Levin, salesman, said that in May last he entered into a contract with Pimentel, and paid him £2OO. The defendant was to supply him with a certain oil. Wakefield said he was induced to do this by the representation of defendant that he was the 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 land, he had been told, and some was already here. These representations were fraudulent and false, plaintiff alleged, and as a result of them he had paid £2OO and had incurred expenses of £3l/10/-, consisting of rent of premises, etc. He claimed accordingly for £209/10/-, which was the sum of these two amounts, less a credit of £3O for oil which had been supplied. He claimed the same amount alternatively lor failure to supply Mecca oil to the value of £2OO as agreed.

A similar claim for the same amount was made by R. Begg, of Wanganui. P. P. Wimsett, of Wellington, claimed £94/6/1 for failure to supply oil to the value of £IOO, less a small credit for oil supplied. Arriving in Wellington in April, defendant advertised for salesmen for a 1 company establishing itself in New : Zealand, said Mi* Treadwell, for plain- j tiffs. Applicants were to take some ( capital. Wakefield called on Pimentel, who told him he was representing one of the largest oil companies in the i world. He told the applicants that if they cduld put up amounts varying from £IOO to £SOO, 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 gets into the box that he is an extremely able man, but an utterly unscrupulous one. If he had not been utterly unconscionable, he would not have been able to make such representations. We believe that 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 £2OO for his agency, but as Pimentel went on advertising, other lambs came to the slaughter. He told a Mr 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. Mr Treadwell gave another example of a similar nature. Evidence will be called, said Mr 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. Secondhand tins were bought from other companies, and the oil which was sold in them were said to be from the oil wells of the Mecca Oil Company. The American Trade Commissioner knew of no such Californian Company. Mr Treadwell mentioned advertising material which Pimentel used. “It looks as if the agreement had been drawn up by .some legal firm,” Mr Treadwell added, “but I don’t want to suggest that the solicitors who drew it up were aware that 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 margin which exists between the wholesale and retail price of oil. Oil which can be bought by dealers for 3/6 a gallon, sells for 8/- a gallon. Wakefield, in evidence, said he was , attracted by an advertisement in the

“Dominion,” and outlined his negotiations with Pimentel, his appointment as agent, and selling up business. Later he, with Mr Gibson, called at Pimentel’s office, now in the D.I.C. building. They met Wimsett oh the landing with ’his mouth bleeding. Pimentel said he had had an argument, and had thrown the man out. Pimentel offered the Hawke’s Bay agency to Wakefield for £l5O. Witness became suspicious, and got in touch with a solicitor. Robert Leith Begg, Wanganui, gave evidence of a somewhat similar experience. He paid £2OO. He received about £IOO worth of oil, which was unsaleable, the public believing it to be second or third grade. Pimentel was charged also with fraudulently obtaining £IOO from Phillip Percy Wimsett, by falsely representing that he was representative of the Mecca Oil Company. Bail was allowed in £IOOO, and one surety of £IOOO. .