WEDNESDAY, MARCH 12, 1936
5
BILL MAKES FRAUDS FROM BANKS CRIMINAL
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NEW PROVISIONS TO BRING THE FRAUDULENT ACTIVITY OF OBTAINING CREDIT BY DECEPTION FROM BANKS OR DEPOSIT-TAKING COMPANIES CLEARLY WITHIN THE AMBIT OF THE CRIMINAL LAW WERE INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
MOVING THE SECOND READING OF THE THEFT (AMENDMENT) BILL 1986, THE ATTORN GENERAL, THE HON MICHAEL THOMAS, SAID THAT IN THE COURSE OF FROSECUTING COMMERCIAL CRIMES, HIS CHAMBERS HAD ENCOUNTERED DIFFICULTIES UNDER THE EXISTING LAW IN DEALING WITH CERTAIN FRAUDULENT TRANSACTIONS CARRIED OUT FOR THE PURPOSE OF OBTAINING CREDIT FROM S OR DEPOSIT-TAKING COMPANIES.
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HE GAVE A TYPICAL EXAMPLE OF A PERSON DISHONESTLY AND BY DECEPTION INDUCING'A BANK TO LEND HIM SOME MONEY. THE PROCEEDS OF THE LOAK ARE TRANSFERRED TO AN ACCOUNT IN HIS NAME IN THAT BANK OR DEPOSIT-TAKING COMPANY, THE PERSON THEN DISBURSES THE AMOUNT OF THE LOAN FROM HIS ACCOUNT.
+IN ITS PRESENT FORM, OUR VIEW IS THAT THE THEFT ORDINANCE DOES NOT CLEARLY MAKE SUCH FRAUDULENT ACTIVITY ILLEGAL, + HE SAID.
MR THOMAS SAID IT WAS, OF COURSE, AN OFFENCE UNDER SECTION 17 OF THE THEFT ORDINANCE TO OBTAIN DISHONESTLY PROPERTY BELONGING TO ANOTHER BY DECEPTION,
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+BUT MY EXAMPLE, THE SUM WHICH FORMS THE LOAN OBTAINED FRAUDULENTLY IS CREATED AT THE MOMENT WHEN THE BANK OR DEPOSIT- TAKING COMPANY AND THE FRAUDULENT BORROWER COME TO AN AGREEMENT. SO IT IS NOT THOUGHT APPROPRIATE TO CHARGE AN OFFENCE UNDER SECTION 17.
+ALTHOUGH IT IS ALSO AN OFFENCE UNDER SECTION 18 OF THE THEFT ORDINANCE TO OBTA, DISHONESTLY AN OVERDRAFT BY DECEPTION, THE BETTER VIEW IS THAT THE NEW LOAN, IN MY EXAMPLE, DOES NOT FALL TO BE DEALT WITH AS AN OVERDRAFT.
*NOR ARE ANY OF THE PROVISIONS IN THE THEFT ORDINANCE, SUCH AS THE OFFENCE OF OBTAINING SERVICES BY DECEPTION, PROCURING THE EXECUTION OF A VALUABLE SECURITY BY DECEPTION OR FURNISHING FALSE INFORMATION, THOUGHT TO FIT THE KIND OF TRANSACTION IN MY EXAMPLE, HE SAID.
THE BEST COURSE THEREFORE, MR THOMAS SAID, WAS TO ENACT NEW PROVISIONS TO MAKE THESE AND SIMILAR ACTIVITIES CRIMINAL, AS THEY BHOULD BE.
+CLAUSE 2 OF THIS BILL MAKES IT AN OFFENCE TO OBTAIN BY DECEPTION CREDIT FROM BANKS OR DEPOSIT-TAKING COMPANIES. CLAUSE 3 OF THE BILL CREATES A OFFENCE FOR A PERSON DISHONESTLY TO PROCURE BY DECEPTION THE MAKING OF AN ENTRY IN THE RECORD OF A BANK OR DEPOSIT-TAXING COMPANY, HE SAID.
/MR THOMAS *****