Charged with defrauding several prominent local banks of sums amounting, in the aggregate, to almost two lakhs of taels, Paul Georges, Varenne, a French citizen, formerly carrying on business under the style of Varence & Ca. silk mer chants, appeared in the French lar Court, before President Eh. and. Messrs. L. Lion vet, sitting as Assessors.
After evidence had- been given, the accused was found guilty, and'sen-to imprisonment of five ide, and a fins ing to French lay, ix multiplied 73 times, and really amounts to Fes. 22,500 or the equivalent of $3,000
The accused was defended Maitre J. Barraud, while Mr. J. Badeley watched the case on behalf of the Horgkong & Shanghai Banking Corporation and the Na. tional Commercial & Savings Bank.
There were 15 charges, in three of which Varecne was charged, 9 principal, with defrauding the National Bank of India, Ltd., and the National Commercial & Saving Bank, of sums amounting to. 085 Sterling, by means of fictitious invoices, accompanying bills-of exchange, to the total amount of. $7,730.' The other 12 further charges were of instigating and abetting one named Pierre Raoul Maurice Arnaud, an employee of the accused's, in defrauding the National Commercial & Savings Bank, the Hongkong & Shanghai Banking Corporation, and the Chartered Bank of Irdia, Australia and Chi Ltd., of amounts. totalling appro: mately to £10,000 odd, on bills mounting to some £25,000.
The man Arnaud was also charged with the first accused on the last 12 of the courts, with defrauding the banks of a' like sum as principal, but this accused, on his name being called, failed to appear, and it is believed that he scended from the jurisdic tion of the Fresch Court, Mr. Y. AL, Low, assistant manager of the National Commercial & Savings Bank, gave that Varenne produced, on his introduc: tion, to that bank, excellent which induced the to advance merey by the negotiations of trade bills in the usual manner, the occured sending in ceztain bills of exchange accompanied by invoices and shipping documents, in March and April of this year, to a total amount of £5,700, this amount being the value of certain eases of silk, shipped from here to Varenne's agents in Lyons, France. In July, Varenne & went into bank: rupted, ard the bills were subsequently dishonoured by the drawees. Investigations, naturally, followed, and it was ascertained that the actual weight, and length of the silk in the cases hypothecated to the bank was entirely different from that specified in the invoices, and, in the result, the bank was only able to realize about one-quarter of the sum which they had advan: ed, upon the security of the said cases.
The reports of sworn valuers of. the Lyons Chamber of Commerce were read, to the effect that most of the contents of the cases, were only from 16 metres to 18 metres ong, lusted of 48 metres to 50 metres, as set out in the invoiers, and were really only worth from 16s. to 18s. per piece, instead of about 80s. to 84x. per piece, as spe-citied in the invoices.
M. F. Bouvier, " the liquidator} appointed by the Court, of Varenn:
Ca, produced his report of th liquidation, and said that the mist ing money, about Fes, 1,600,000 had been remitted to Lyons to Jacques Varenne, a brother of the accused, and the local assets realized mere: ly a negligible cum.
Evidence was also given by Inv.
M. Cook, and Mr. J. Hall of the Hongkong '& Shanghai Bani Corporation, by Mr, J. R. Huxter, acting accountant of the Mercantile Bank of In and by Mr. C. C. W. Willson, sub-accountant the Chartered Bank of India, Auste China, detailing the w: the frauds had been carried out on their respective banks, and such evidence war, in effect, of the same Purport as that given by Mr. Low.
The accused, on being interrogated by the President, the facts of the cas stated that Arnaud had dis the only specific la CHOLERA ana
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