BIG FRAUD ACTION STARTS IN SYDNEY.

Star (Christchurch), Issue 18992, 11 February 1930, Page 1

BIG FRAUD ACTION STARTS IN SYDNEY.

NINE MEN FACE COURT ON CONSPIRACY CHARGE

(United Press Assn.—By Electric Telegraph—Copyright.) SYDNEY, February 10.

Nine men were presented at the Central Police Court in Sydney to-day, charged with conspiracy to defraud a number of wholesale warehouses. The accused were:—Albert Ellisdon, aged sixty; Albert Cameron, twentyseven : Harry Roden, thirty-nine; Nathan Mandleson, sixty-nine; Benjamin Newberg, thirty; Harry Levy, six-ty-seven ; Morris Kutner, thirty-eight: Daniel Rogerts, thirty-nine :• and Joseph Wilson, forty-five. The case had just commenced when Rogers was discharged.

Evidence disclosed that they had carried on business under the name of Cheapley’s, Ltd. It was represented to various firms from whom goods were obtained that Ellisdon was a man of sound financial position, which was alleged to be false; that Cheapley’s established branch shops in the heart of Sydney, and sold goods at ridiculously low prices, often under cost; that their losses for five months were over £40,000; and that when the company went into liquidation the debts aggregated £57,000. The case is proceeding.

A cablegram received during December said that a fortnight’s inquiries by detectives resulted in the arrest of a number of men for an alleged fraud, involving £60,000. The firm with whidh the men were connected came into existence some time ago, trading on the ninety-day bill system, buying huge quantities of merchandise from the warehouses and selling at ridiculously low prices to retailers. The bills fell due at the beginning of December, and according to official statements were not met.