TRADERS' LOST MILLIONS.

Waikato Times, Volume 104, Issue 17466, 28 July 1928, Page 14 (Supplement)

TRADERS' LOST MILLIONS.

THE "LONG-FIRM" SWINDLER. DEFALCATIONS OF £IO,OOO. , Defalcations in the neighbourhood of £lO 000 were attributed to Henry Musgrove, 20, described as a merchant, who at the Old Bailey, London, was found guilty of carrying on a "lo»$flrrn" fraudThe jury accompanied their verdict .with the following statement to Judge Atherlev-Jones, K.C: "The jury would like to express their opinion to the effect that, were it not for firms granting credit to people unknown to them, with considerable laxity, fraudulent trading would become very difficult to carry on, and that such firms, by their lax methods, contribute to a system known as the long-firm business, which in the past few years has cost the trading community in Great Bruain many millions of pounds loss."

The case for the prosecution, presented by Mr H. D. Roomc, was that Musgrove had carried on a business in Bromley, and gave orders for goods to Arms all over the country. All kinds of grocery, drapery, ironmongery, confectionery, and oil goods had been obtained, and the firms who supplied Musgrove had never received any payment. When the traders wrote to Musgrove asking for payment of their accounts, their letters were returned marked "gone away." Another man who was charged with Musgrove was found not guilty, and he was discharged. He was Ernest Wheaton, 39, clerk-Detective-inspector Gory gave details of the career of Musgrove, whoso correct name was Francis Leonard Ambrose. In 1922 he was bound over for frauds in connection with a house which he had to let furnished for an Indian gentleman. The furniture was sold by auction for £3lO, although the actual value was £ISOO. He was associated with a number of businesses which defrauded traders, being sentenced to 12 months' imprisonment at the Old Bailey in 1924, and to a similar term at the Mansion House in 1926. The officer described him as "possessed of a unique criminal instinct." Passing sentence, the judge observed: "You have ben convicted on the clearest possible evidence of one of the most dangerous frauds known. The very essence of successful trading in this country is good faith and trustfulness of those who trade, and it is impossible, if trade is to be carried on, for any trader to avoid now and again falling into the clutches of men like you. It is difficult for a trader to protect himself from an ingenious criminal like you. You have been leading a life of fraud for years. You applied your intelligence to criminal practices, cunningly devised and cleverly carried through." Sentence of three years' penal servitude was passed. Musgrove declared that he should appeal.