FALSE PRETENCES.

Waimate Daily Advertiser, Volume XXI, 12 August 1921, Page 7

FALSE PRETENCES.

AN AUCKLAND CASE. Per Press Association—Copyright). AUCKLAND, August 11. At the Supreme Court to-day, the third day of the trial, Alfred Oscar Otta, managing director of the National Co-operative Realty Company, was found guilty of obtaining £4OO from James Mackay Linklater, by means of a false pretence. The Crown case was that the accused misrepresented the financial position of the company to Linklater, and thereby induced him to take shares in the company. Accused represented a turnover of £lO,OOO, assets between £3OOO and £5OOO and liabilities about £lOO. When Linklater’s solicitor asked for books, he was told they were not written up. The firm was too busy making money, and the balance sheet was not made out. The solicitor advised against any investment, but Linklater invested, and was engaged also as a salesman. Shortly afterwards Linklater discovered in the office a statement signed by the accused showing the liabilities at £2186, and the assets £2OO less. Immediately he joined the office Linklater was asked for a loan of £2OO on the ground of financial stringency, and to keep the company afloat. In March a distress warrant for £l4l was issued against the company, Linklater paying the amount and taking a bill of sale on the eompanys furniture. In addition he advanced £ll3 to pay the rent, typiste, and legal expenses. Tho defence was that the accused honestly believed what he represented, that the statement in question did not show assets, but only liabilities.

A public accountant gave evidence that a comparative statement of affairs for same period showed that the company was at that time in a fairly substantial position, the assets exceeding the liabilities by £5452, leaving out the fully paid up capital ot £5755, which was a liability but was balanced by the goodwill of a similai amount. This was admitted to be a purely paper balance sheet, but drawn from the company’s books. The jury recommended accused to mercy on account of his wife and seven children. Sentence was deferred.