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, ., | ~ ae . . be 2 NY 14642507 oo SIMPSON, SPENCE & YOUNG records reflectod that in compliance with the nbove requestod two SIMPSON, SPENCE & YOUNG chotks, dated December 29, 1950, in amounts of $700,000.00 and %59,000,00, were issued payable to Victory Carriers, Inc, An exanin:tion of the endorsomonts of instant checks reflected that they wore deposited to the account of Victory Carricrs, Inc, on December 29, 1950, : Photostatic copies of the two checks in emounts of $700,000,00 and &50,000,00 are being forwarded with this report 23 onclosures numbor 15 and 16. an examination of the SIMPSON ENCE & YOUNG records with tho assistancy of - reflected thet on Docombsr <3, iY50, a cas s #700,000,00 to the order of SIMPSON, SPENCE & YOUNG had been - reccived from the iIntional City Bank, An accompanying memorandum from .RION. instructcd SIMPSON, SPENCE % YOUNG to credit its uccounts, The check was deposited in a SIMPSON, SPENCE & YOUNG inactivo account at tho National City Bank, 26 Broadway branch, The abovoemcntioned chuck for '5700,000,00, to Victory Carriers, Inca, Was draywm on this inective account at the Nationel city Bank, 26 Broadway, The reccipt from JRIONS and the subsequent disbursomcnt to Victory Carricr was entered upon SIMPSON, SPENCE & YOUNG'S books by means of a single journal entry debiting Victory Cerriors anc croditing ARION. with the oxplanation, "To adjust transactions in National City Bank iccount Decomber 29, 1950," thst SIMPSOH, SPENCE & YOUNG did not have a4 cash recount on 10s books for that inuctivoe bank account and said that the purnal cntry wis, therefore, the moans used to record the receipt end subsoquont payment, & Mee ke ee Liew 4s mcentlonod above, Victory Carriers transmitted its 4) —_ $750,000,00 to SIMPSOH, SPENCE & YOUNG on January 3, 1951, ‘S Pr en a eS es Ce ea ae aT eee ed ee Oe ee Sehr es ein ails OLR Ce TOPE TY AE I TN Cec ir same te te a ta abe ce) et wee a asked why such a chock to bo crodited to a clienttg fAecount would bs certified, Ifa stated that the company policy was to roguest & cortified chock or to arvrango ita cortification thomselvea only if tmmaudiate disbursomonts wore contomplatod from the involvcd funds, Tho SIMPSON, SPENCE & YOUNG cash disbursemont book reflected that on Janunry 3, 1951, a payment of $700,000.00 wes mido to tho Wational City Bank and that this payment was charged to tho aétount of ARIONA,