ALLEGED FRAUD.

Waikato Times, Volume 112, Issue 18803, 26 November 1932, Page 6

ALLEGED FRAUD.

CLAIM BY FARMER. BANK MANAGER SUED. (By Telegraph.—Press Association.) NEW PLYMOUTH, Friday. On an allegation of misrepresentation Arthur Edward Cowley, of Tariki, farmer, proceeded in the Supreme Court to-day, before Mr Justice Reed, against Cecil Claud William Haselden and the Bank of New South Wales, in a claim for £750 and interest. The aclion against the bank was not proceeded with, and counsel for plaintiff accepted a non-suit with costs.

For the plaintiff it was held that Cowley was approached by S. R. Harlow, solicitor’s clerk, to advance £750 to Harold J. M. Thomson, formerly solicitor at Inglewood, on the security of a seven-acre property at Otahuhu, and he referred Cowley to Haselden for particulars of the security. It was alleged that the advance was made on the misrepresentation of Haselden, who was then manager of the bank at Inglewood; further, that he withheld certain information from Cowley namely, that the value of the property had been reduced by the bank from the original valuation of £ IGOO to £I2OO and then to £7OO. also that lie knew the bank was pressing seriously for the repayment of Thomson's overdraft, which at that time amounted t 0 £BOO. H was alleged that there v.cre inducements which led Cowley to make the advance. When a crash in Thomson’s affairs came ii was found that there was no proper mortgage to Cowley, and that all the hank held was an unregistered mortgage to anollier person, which subscquenlly was registered, and Cowley took a second mortgage- for what if was worth. The property was subsequently sold by the first mortgagee.

“ i don’t think this matter should go any furlhcr,” said Mr Justice Reed at the conclusion of evidence, hut before counsel had addressed the court. Tim Judge held that the charges had not heen justified and entered judg~~>il for Haselden with ousts.