CONSPIRACY TO DEFRAUD.

Star (Christchurch), Issue 16705, 10 April 1922, Page 2

CONSPIRACY TO DEFRAUD.

THE WOOLEY CASE. By Telegraph—Press Association—Copyright. Australian and N.Z. Gable Association. LONDON. April 8. After twenty-six days' trial, the jury found E. T. Hoolev, J. A. Macdonald. T. Tj. Demery and W. A. Wallis guilty of a charge of conspiracy. T. Fletcher and B. Breakspear were found not guilty. Hoolev was sentenced to three years in the general division, and M’Donnld was bound over to be of good behaviour. Wallis was sentenced io ten months and Demery to a year s imprisonment, both in the second division. Hooley is appealing. Ernest Terah Hooley (a well-known London financier), Thomas Fletcher. J.P. (alderman and former Mayor of Derby), John Angus M'Donald. J.P. (former Mayor of Ilkeston). Thoffias Llewellyn Demery. William Alfred Walks (solicitor) and Bertrand Breakspear were, summoned for conspiring together and with others unknown to defraud such persons as should deal with either or any of them in shares or debentures in a company called the Jubilee Cotton Mills. Limited, between November 1, 1019, and December 31, 1920. In outlining the case in the Bow Street Court the prosecution said the Jubilee Cotton Mill was let to Fletcher’s firm at an annual rent of £475. Fletcher had previously agreed to purchase the mill for £8750, and had paid a deposit of 10 per cent. He entered into arrangements with Hooley and M’Donald for the sale of the mill, and the transaction was recorded ori half n sheet of hotel notepaper in the following terms:—“Mr Fletcher to receive in cash £20,000. shares £35.000, total £55.000, E. F.. as purchaser, to pav by February 5 £15,000 for 15,000 shares.” This was signed by Hooley and 31 Dona Id. and was the extraordinary transaction by means of which the proceedings started. Not a penny oi money seemed to have passed at the time. Tom Lewis, a young shipowner who had command of large sums of money, then came into the picture. Demery persuaded him to invest money in the concern, and it was •arranged that a company should ho formed with a capital of £150,000. Lewis lost £60,000 as a result of entering the transaction. At that time Lewis had no notion that Hoolev had anything to do with it ; he kept studiously in the background and. according to a statement which ho himself made in his most recent bankruptcy, he was waiting in a solicitor's office in London while the negotiations were going on in the Waldorf.

THE NEVANAS CASE

LONDON. April 8. Sydney Vigors Nevanaw was found not guilty of fraud and discharged. William Henry Cuffin was found guilty j of fraud and not guilty of conspiracy, j He was sentenced to eighteen months 1 j imprisonment in the. second division. 71 ie liquidator of Nerana.s and Com- } pany. Limited, charged William Henry j Cuffin and Sydney Vigors Novanas at j the Guildhall with the fraudulent con- J version of Government moneys, total- j ling £170.000, while acting a? Govern- 1 meat meat agents. Counsel for the j prosecution alleged that defendants re- ! ceived a large number of cheques from j dealers on account of Government meat > which defendants had sold, and in- j stead of paying the cheques into n j separate account earmarked for Government transactions, they paid them I into their own business account and j used the money for their own purposes. Counsel contended that Cuffin must have known that Government money was being used for other purposes and that the company was hopelessly insolvent in 1920. Borne most material books anil paid cheques had disappeared.