TRUST FUNDS STOLEN

Wanganui Chronicle, Volume 73, Issue 450, 16 December 1930, Page 6

TRUST FUNDS STOLEN

SOLICITOR BEFORE COURT j OVER £lBOO MISAPPROPRIATED I F. F. WILLS TO BE SENTENCED Frank Fabian, Wills, solicitor, of Wanganui, doing business under the name of Slipper and Wills, appeared before Mr J. H. Salmon, S.M., at a' sitting of the Alagistratc’s Court at Wanganui yesterday on seven charges of theft. Detective J. Walsh conducted the prosecution, and Mr W. J. Treadwell appeared for the accused. Detective Walsh asked that the charges be taken together and this was agreed to by Air Treadwell. The charges were as follows: On or about November 23, 1928, at Wanganui, stealing £470, the money of William Palmer. On April 9, 1929, and on divers dates to August 8, 1930, did receive sums amounting to £266 17s 4d, on terms requiring him to pay the mones to William Palmer, and did fraudulent ly convert to his own use. On December 12. 1926, did steal £4OO, the property of Frederick Licneweber. On October 26, 1926, did receive from Thomas Morgan the sum of £250 on terms requiring him to pay the money to William Hicks Mann, and did fraudulently convert the money to his own use. On March 21, 1929, did receive £4OO from Daniel Wilson on terms requiring him to pay the money to Elizabeth Brown, and did fraudulently convert the money to his own use. On July .15, 1928, and on dates to October. 1928, did receive sums aggregating £4B 5s on terms requiring him to pay the money to the estate of Charles James Halligan,' and did fraudulently convert the monev to his own use. On dates between August 23, 1930 and October IA. did receive money amounting to £2B IDs from S. AlcCann on terms requiring him to pay to Sydney Wood, and did fraudulently convert the money to. his own use. Palmer’s Evidence.

William Palmer said that prior to 1929 he was in business at GonviHe as a baker. On November 23, 1929. he paid Wills £470. This was to be invested by Wills, who said that he had three clients. The money was to be placed at 6$ per cent. He signed no papers but received a receipt for £470. He had received no interest since the beginning of the year. In connection with, the second charge he sold his business last June, receiving £650, the balance to be paid later. He had received some of the amounts. He knew that Bcaven had paid in money which he had not received. These amounts totalled about £240. In addition to the outstanding amounts in connection with the business trans action, Wills was instructed t • collect other monies owing to him. Last November he saw Wills who told him he had £305 for him. Wills should account to him for £730. To Air Treadwell, witness said that when he handed the money to Wills, he was told Wills had three clients. He was told how much they wanted individually. The sums were £l5O, £250, and £7O. He was concerned in a timber speculation with Wills. The shares he was entitled to were held in Wills’ name at witness’ request. After handing over the cheque he made no enquiries concerning securities. He never applied to Wills to see if they were in order. In regard to the second charge he made no enquiries until he received no payments from "Wills.

| To Detective Walsh: He did not receive any money fn|i Wills in August, 1930. Purchased Business. Harry Beavcn, baker, of GonviHe, said be purchased a baking business from William Palmer in July, 1929. After he bought the business Palmer went to Normanby. Wills acted for them both during the transaction. He paid in cheques totalling £175 13s 6d. This represented the balance and interest due. Elizabeth Brown said that fur some years Wills had acted as her solicitor. She gave him ; rt 4oo in Afarch, 1927. This was to be lent to a Air Wilson, on property, at Richmond Street, Wanganui East. Interest at the rate of 61 per cent wi.s arranged. She had received all interest with the exception of the last quarter. She had not received back the principal. She was under the impression until a week ago, that the mortgage was still in existence. To Afr Treadwell: Wills had acted as her solicitor for five years. She had given him other money which was satisfactorily invested. ’ Daniel Wslson. cabinet-maker, said that through Wills he had made arrangements to borrow £4OO, the mortgage to be in Airs Wilson’s name. Security was a house property. Interest was to be paid to Wills by witness or his wife. Receipts were issued by Wills on behalf of Airs E. Brown. He approached Wills in November, 1928 with a view to paying the mortgage off. Wills told him to wait until Alarch when two years would have elapsed. On Afarch 23 he paid Wills £402 9s for repayment to Airs Brown. The £2 9s was for expenses and for the release from the mortgage. He produced receipts. He. had. paid no interest since Alarch 23, 1929. He had never received the sum of £4OO, on mortgage from Air Lieneweber. £4OO Tor Investment. Fred Lieneweber said that Wills had been his legal adviser for a number of years. He had acted for him in a number of investments. He gave Wills a cheque for £4OO for investment on mortgage to Mr Wilson, of Wanganui East. He had accompanied Wills to view the property and was quite satisfied with the security. He produced a receipt showing that he was lending £4OO to Wilson at the rate of 6| per cent., the interest to be paid yearly Wills was to receive the interest for him. Until the last half of the year he had received the money due.

To Afr Treadwell: He had previously placed £BOO and £5OO with Wills. These had been investigated and were in perfect order. William Hicks Alann said that Wills had acted as his solicitor for a number of years. On April 26, 1920, he lent £250 on first mortgage to a man named Laurence. He thought that, it was three years at 6A per cent. Wills took charge of the mortgage, which was not satisfied on its due date. This had never been paid to him. He had received £4O but no money during the last 12 months. He had spoken to Wills on several occasions about, getting the mortgage released. Wills told

him Laurence was out of work and he had three children. He did not remember signing a release and had not received £250. To Air Treadwell: From 193£ up till recently he had made no enquiries. Wills had transacted other business for him and this was quite satisfactory. Other Transactions. Harry Laurence, a carrier, said that he had secured money on mortgage from Air Christie, which later was carried on by Wilis. The money was the property of William Mann. He attempted to get Wills to extend the mortgage but this was refused. Wills saying that Mann required the money. He later sold the property to Thomas Morgan. Alorgain paid a sum. of £30(1 to Wills to cover Air Alann’s mortgage. Thomas Morgan, custodian, said that in October, J 926, he purchased a property from Laurence. There was a first mortgage of £250, which he understood had to be met. Wills acted for himself and Laurence. He produced a receipt for £3OO, dated October 26, 1926. He also paid the expenses in connection with the transfer of the property. Roderick Alurray Finlayson, public accountant, said he had been instructed by the Wanganui Law Society to audit the accused’s books. He had commenced on December 6 and had been assisted by the accused, who told him that the sum of £4OO referred to in connection with Palmer was misappropriated. His trust books disclosed he had received that amount. This amount wag credited in his trust account to the account of W. AL Wills. Wills admitted it belonged to Palmer. Wills admitted that the £266 17s 4d received between April 9, 1929, and August 1930, belonging to Palmer had been misappropriated. Of this £l2O was entered in his trust account book in the name of W. M. Wills. The accused admitted receiving £4OO on December 6. 1926. This was credited in the trust book in the name of W. M. Wills. The accused admitted he had misappropriated the money and had not lent it to anyone. Wills admitted receiving £3OO from the witness Morgan, in October, 1926. This was to go to Alann, but had not been forwarded. The accused also admitted having received a cheque from the witness Wilson on March 21, 1929, for £4OO. Thin was for repayment advanced through. Wills bv Airs E. Brown. Wills did not pay this amount to Mrs Brown. Ho credited it on date of receipt to the account of W. M. Wills. The accused said he was acting on behalf of creditors in the insolvent estate of Charles James Halligan. He admitted misappropriating £4B 5s but claimed that £4O was due to him in costs. The accused said he had ben instructed by Wood to collect an outstanding debt. Wills had received £2B 10s from C. AlcCann. Fraudulent Methods. An examination of the books revealed that the principal methods adopted were to credit a dummy account or issue receipts,. In addition several receipts were omitted from accused's books.

To Mr Treadwell: The W. M. Wills account referred to was an account kept in accused’s trust account. To Detective, Walsh: This account was operated on by Wills. John Walsh, detective, said he commenced enquiries concerning Palmer’s complaint on December 2. Re saw Wills, who told him quite frankly that he had misappropriated money belonging to Palmer. The amount totalled £730. The money was not invested, no security being taken over any monies paid out by him from the amount of £470. Regarding the £266 17s 6d, Wills said it consisted of several amounts which he had collected on Palmer’s behalf. These amounts include! money he had received from the witness, Bea .cn. He produced a statement from Wills admitting misappropriation. He saw the accused again on December 12 and discussed the other five charges. Mr Finlayson, an accountant, was consulted. The accused and hL counsel afforded him every assistance in clearing the matter up. Accused pleaded guilty to all charges and was committed to the Supremo Court at Wellington for sentence oa Thursday morning.

The accused was granted bail on his own recognisance of £SCO and two se* curitics each of £250.