Fraudster reprieved
Page 8
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A HAULIER who had been convicted of setting fire to one of his own vehicles to defraud an insurance company was successful in obtaining the grant of a new operator's licence for six months before East Midlands Deputy Licensing Authority Humphrey Lewis.
Sutton Freight, of Sutton-onTrent, was seeking a new national licence for two vehicles in possession with one vehicle and three trailers to be acquired in continuation of the business of Richard Walton trading as Sutton Haulage.
Mr Lewis indicated that he was concerned about the company's financial standing and it was said that Mr Walton's mother had guaranteed overdraft facilities at the bank of £10,000. • Mr R. Hadfield for the company said it was not in a position to produce audited accounts but he was able to produce trading figures and forecast of income and expenditure.
Mr Walton had been advised by his accountant to form a limited company but it had been slow in accomplishing the transfer and other accountants had now taken over.
There was a current overdraft of £1,025 and £6,750 was owed to a company which had financed the purchase of a lorry which had been damaged by fire.
Mr Walton and two others had faced criminal proceedings over the fire, Mr Walton receiving a nine month prison sentence suspended for two years.
Questioned about a report in the technical press that there had been a county court judgment against the company in March in the sum of £810.55 Mr Walton said the money had now been paid off.
Questioned further, Mr Walton said that one of the two vehicles now in possession was paid for and there was £1,000 in hire purchase still owing on the other.
Mr Lewis said he had considerable doubts about the financial standing of the company. The documents appeared to suggest that a profit was being made but people who committed arson to get money were either greedy or in the most dire financial straits.
Granting a licence for two vehicles for six months only, Mr Lewis said he would need to see properly audited accounts in six months' time.